TL;DR: Mars Protocol is shaping up to be a comprehensive DeFi super-app. Originating from Terra Classic, it has expanded into a multichain protocol on Cosmos, offering a suite of services like lending, borrowing, margin trading, and more. This post covers its architecture, products, revenue model, tokenomics, and future roadmap.

Mars Protocol: The Future of DeFi Super-Apps

Mars Protocol isn't just a concept—it's becoming a reality. Here’s a deep dive into what makes this multichain DeFi protocol a game-changer.

Overview:

  • Mars Protocol started as a dApp on Terra Classic and has evolved into a multichain protocol using a Hub-and-Spoke model.

  • It supports lending, borrowing, margin trading, and high leverage strategies, catering to the needs of DeFi enthusiasts.

Technical Architecture:

  1. Mars Hub: The central command for governance.

  2. Satellite Markets: Lending protocols on various chains within the Cosmos ecosystem.

Product Offerings:

  • Rover Credit Accounts: Unified interface for spot & margin trading, lending & borrowing, and farming.

    • Features cross-collateralization and the option to earn yield on deposited assets.

  • Red Bank: Core lending and borrowing functions with a standard two-slope interest rate model.

  • Margin Trading: Long or short assets with leverage, utilizing the entire Rover account as collateral.

  • Leverage Staking: Enhance yields with leverage, reducing liquidation risks through correlated assets like stATOM & ATOM.

Revenue Generation:

  • Mars Protocol earns through a 10% cut of all interest payments towards lenders and variable liquidation fees.

Fee Distribution:

  • Fees are split equally between the Safety Fund and $MARS stakers.

Tokenomics:

  • $MARS: Initial supply of 1 billion, currently 700 million in circulation.

  • Distribution includes Token Claim (6.7%), Community Pool (63.3%), and Mars Contributors (30%).

Governance:

  • Governance involves approving outposts, adjusting parameters, and managing the community pool and safety fund allocations.

Key Metrics (as of July 18, 2024):

  • TVL: $17.73M

    • Osmosis: $16.8M

    • - Neutron: $1.05M

Security and Audits:

  • Multiple audits by Oak Security and Halborn, with an emphasis on security for every new product launch.

    • [Mars Protocol Audits on GitHub](https://github.com/mars-protocol/mars-audits)

Future Roadmap:

  • Migration to Neutron: Mars Hub will be deprecated to save costs, focusing on key products within a single ecosystem.

    • [Mars x Neutron Alignment](https://forum.marsprotocol.io/t/mrc-67-mars-x-neutron-alignment/1128)

  • Perpetuals Trading: An oracle-based model for scalability and trading synthetic assets.

  • Copy Trading Vaults: Users can choose traders to mimic, allowing deposits and potential earnings with minimal hassle.

Personal Thoughts:

  • Mars Protocol offers a best-in-class user experience through its unified Rover accounts.

  • The solid roadmap and strong product track record make it a bullish prospect.

Feel free to dive into the technical aspects or share your experiences with Mars Protocol below!