Interest Protocol (IP) is the first fractional reserve banking protocol on the Ethereum blockchain that pays interest to all depositors. Interest Protocol issues a stablecoin, named USDi, that is both over-collateralized and highly scalable. USDi holders automatically earn yield without having to stake, which means Interest Protocol provides yield opportunities to gas-conscious users. Compared to lending protocols without fractional reserves, Interest Protocol can generate more loans from a given amount of capital while incurring less liquidity risk.

The protocol has two primary participants:

• Depositors who hold USDi and earn interest
• Borrowers who borrow USDi from the protocol after posting collateral.

The governance token for Interest Protocol, IPT, allows its holder to delegate their associated governance rights to a designated representative's address. Delegates can then use that voting power on Consensus Checks, Proposal Votes, and Emergency Votes.