Mars Protocol Airdrop Review: A Brave New World

Mars Protocol Airdrop Review: A Brave New World

About Mars Protocol Airdrop

Mars Protocol Airdrop is a credit protocol for the future: non-custodial, open-source, transparent, algorithmic and community-governed. It aims to attract deposits and lend out this money while managing illiquidity and insolvency risk. Unlike banks, Mars is fully automated, on-chain credit infrastructure governed by a decentralized community via a transparent governance process.

Mars Protocol is airdropping a total of 10,000,000 MARS to LUNA stakers, bLUNA holders & LUNAX holders. Users who’ve staked at least 10 LUNA or held at least 10 bLUNA or LUNAX by January 1st, 2022 are eligible to claim the airdrop.

BasicDetails
Token NameMars Protocol Airdrop
PlatformTerra
Total Supply1,000,000,000 MARS
Total Value10,000,000 MARS
KYCKYC Is Not Requirement
WhitepaperClick Here To View
Max. ParticipantsUnlimited
Collect AirdropClick Here To Collect Free Airdrop

Step-by-Step Guide:

  1. Visit the Mars Protocol airdrop claim page.
  2. Connect your Terra wallet.
  3. If you’re eligible, then you will see a MARS button at the top right.
  4. Click on the button to claim your tokens.
  5. Users who’ve staked at least 10 LUNA or held at least 10 bLUNA or LUNAX by the snapshot date are eligible to claim the airdrop.
  6. The snapshot was taken on January 1st, 2022 at Terra block #5,895,050.
  7. Users who had at least 10 LUNA or held at least 10 bLUNA or LUNAX will be able to claim 18.47 MARS and users who had a balance greater than or equal to 20,000 LUNA or held a balance greater than or equal to 20,000 bLUNA or LUNAX will be able to claim 3694.64 MARS.
  8. The rewards can be claimed for up to three months after the launch of Mars Protocol else will be returned to the Martian Council — a DAO of xMARS token holders.
  9. For more information regarding the airdrop, see this Medium article.

Fully Automated

Mars is a fully automated, community-governed, on-chain credit protocol built on the Terra blockchain. Like existing credit protocols, interest rates are priced algorithmically based on utilization rate. Mars will launch with a standard, two-slope rate model (similar to Aave or Compound). Governance will ultimately have the power to activate a dynamic interest rate model based on Control Theory, allowing for greater responsiveness and capital efficiency.

Liquidation

Borrowers are susceptible to liquidation when their loan-to-value (LTV) ratios fall below the required maintenance margin, which happens when their collateral decreases in value relative to their debt. Any address can repay a fraction of a borrower’s debt (with the maximum fraction determined by the close factor) in exchange for an equivalent amount of the borrower’s collateral plus a bonus. Liquidators can choose to receive either liquidity tokens (which will be transferred from the borrower to them) or receive the underlying assets (which causes the borrower’s liquidity tokens to be burned).

Protocol Participants

There are 4 stakeholders in the Mars Protocol ecosystem:

  1. 1.Lenders: Deposit assets into Mars liquidity pools, earning an interest rate
  2. 2.Borrowers (collateralised): Borrow assets from Mars liquidity pools using their deposited assets as collateral. These borrowers must therefore also be depositors (lenders)
  3. 3.Borrowers (contract-based): Smart contracts that borrow assets from Mars liquidity pools without posting collateral. Each smart contract credit line must be approved by governance and will include a credit limit to mitigate the protocol’s risk exposure
  4. 4.Council: Stake MARS in order to earn protocol fees, participate in governance and backstop certain kinds of protocol risk

Staking — xMARS

MARS holders who wish to participate in governance can stake their MARS tokens and receive xMARS in return, with an unstaking period of 7 days. xMARS has a few key properties:

  • Governance: 1 xMARS = 1 unit of voting power. Only xMARS (and MARS that’s locked for Mars Joint Venture contributors) can participate in governance, making decisions on asset listing, risk parameters, treasury spending and more.
  • Fees: xMARS holders will receive a share of protocol interest-rate revenue. Similarly to SushiSwap’s SushiBar contract, this will be done by using the revenue to buy MARS on the open market and adding it to the xMARS pool.
  • Safety Fund: xMARS holders will be incentivized to backstop protocol risk by using a pool of reserved aUST (the ‘Safety Fund’) as a first-resort source of recovery for shortfall events and staked Mars as a last-resort source of recovery for Shortfall Events, with up to 30% of their stake being locked and sold in case of a shortfall event