What is 88mph ($MPH)?

As decentralized finance (DeFi) continues to evolve, innovative protocols and applications are emerging to offer new opportunities for crypto users. Among these is 88mph, a unique Ethereum-based decentralized application (dApp) that allows users to borrow and lend at a fixed interest rate. This guide explores the intricacies of 88mph, its functions, and how it integrates with other DeFi platforms.

How Does 88mph Work?

88mph is a decentralized financial protocol that facilitates borrowing and lending at fixed interest rates. It acts as an intermediary for more established DeFi lending protocols like Aave and Compound. Unlike traditional lending protocols that offer variable interest rates, 88mph provides users with a predictable and consistent yield. This feature is particularly appealing to investors seeking stability amidst the volatility of the crypto market. By offering fixed rates, 88mph aims to attract those who prefer predictable returns over potentially higher but uncertain gains.

Fixed-Interest Yields

One of the core features of 88mph is its fixed-interest yield system. Users can connect their MetaMask wallet to the 88mph app and deposit various cryptocurrencies into liquidity pools. These smart contracts then allocate these assets to third-party protocols like Aave or Compound. Once users select a maturity period for their deposit, ranging from one day to one year, the 88mph protocol calculates a fixed annual percentage rate (APR) based on a 30-day exponential moving average (EMA) of the underlying protocols' variable yield. At the end of the maturity period, users receive the fixed interest rate yield along with MPH token rewards. If users withdraw before the maturity date, the fixed rate is forfeited, and a 0.5% withdrawal fee is applied.

Example:

• Deposit: 1,000 USDC

• Fixed Rate: 7% for 12 months

• Yield: 70 USDC at maturity, plus MPH rewards.

Yield Tokens (YTs) for Advanced Users

88mph also offers yield tokens (YTs) for more experienced DeFi users. Yield tokens allow users to speculate on future variable yields of the underlying protocols. When users deposit assets like USDC, the 88mph protocol allocates these to platforms such as Compound, issuing cUSDC-YT tokens, which represent a stake in the variable interest rate. If the yield increases on Compound, the value of the YTs rises, enabling users to profit from the appreciation. Additionally, YTs help mitigate risks by providing extra liquidity, which can cover potential losses if fixed-rate deposits are withdrawn prematurely.

Example:

• Asset: USDC stablecoin

• Allocation: cUSDC on Compound

• Tokens Issued: cUSDC-YT

• Benefit: Profit from increased Compound yield; mitigate insolvency risks.

MPH Tokenomics

MPH is the native governance and incentivizing token of the 88mph protocol. It serves both as a reward mechanism and a governance tool within the ecosystem. Here are key aspects of MPH tokenomics:

• Rewards: Users receive MPH tokens as incentives for depositing assets.

• Staking: MPH tokens can be staked to gain xMPH, allowing users to earn a share of protocol revenue and participate in governance.

• Integration: MPH tokens can be used as collateral on other DeFi platforms like Mantra DAO or Rari Capital.

• Liquidity: Providing liquidity on platforms like Balancer earns users veMPH tokens, which allow them to share in protocol fees.

Security and Risk Management

88mph employs several security measures to protect user assets and ensure the integrity of its protocol. The platform has undergone audits by reputable firms such as Trail of Bits, PeckShield, and Code 423n4. In addition, it integrates with insurance protocols like InsurAce and Bridge Mutual to cover smart contract risks. Being a non-custodial protocol, 88mph ensures that users maintain control over their assets at all times. This comprehensive approach to security provides a layer of confidence for users looking to earn fixed yields.

Interview with 88mph's Co-Founder Mcfly AKA Guillaume Palayer

The 88mph co-founder interview explores the evolution, features, and future plans of the crypto project 88mph, co-founded by the guest McFly. He shares how they ventured into crypto in 2017 and transitioned from on-chain asset management projects to creating 88mph, which offers fixed interest rates on deposited stablecoins and cryptos. The interview discusses the technical details, such as how 88mph pools user deposits and invests them in protocols like Compound, averaging the yields to provide a fixed rate. The conversation also dives into the governance mechanisms, tokenomics of the native MPH token, security through audits and bounties, and strategic collaborations, especially with Chainlink.

McFly highlights the project's efforts to make the platform user-friendly and accessible to developers, position itself as a foundational layer for decentralized finance (DeFi), and plans to integrate insurance solutions. They discuss the vision for growth, aiming to become a base layer for other applications. Key discussions include their participation in SmartCon and sponsorship of hackathons to foster community and developer engagement. The team emphasizes future focuses on extending user trust and insurance integration, enhancing security, and expanding partnerships within the crypto ecosystem.

Conclusion

88mph offers a novel approach to earning fixed yields in the DeFi space, automating the maximization of variable yields through established protocols like Aave and Compound. By providing predictable returns and leveraging the capabilities of multiple DeFi platforms, 88mph caters to both novice and experienced investors seeking stability and potential growth. Moreover, the governance and incentive mechanisms built around MPH tokens add layers of utility and engagement opportunities for users. Overall, 88mph exemplifies the innovation within the DeFi ecosystem, successfully bridging the gap between fixed-term investments and decentralized finance.