How Peridot Works

Peridot creates efficient money markets for crypto assets with algorithmically determined interest rates based on supply and demand.

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Introduction to Peridot

Peridot introduces a decentralized protocol on multiple blockchains that creates money markets for crypto assets. Our goal is to establish algorithmically determined interest rates based on supply and demand.

This allows users to seamlessly trade the time value of their crypto assets through an automated, decentralized system with transparent interest calculation and immediate liquidity.

Problems We Solve

  • Limited borrowing mechanisms for crypto assets
  • Negative yields due to storage costs and risks
  • Centralized exchange risks and limitations
  • High costs and low convenience in P2P solutions

How the Protocol Works

Peridot creates separate markets for various crypto assets across multiple blockchains, providing transparent, publicly accessible markets with complete transaction history and real-time interest rates.

Asset Supply

Earn Interest

Users provide assets and receive pTokens representing a growing share as interest accumulates automatically.

Liquid withdrawal anytime
Automatic interest accumulation

Ideal For:

  • Long-term holders
  • dApps with idle assets

Borrowing

Access Liquidity

Instant loans without negotiations using pTokens as collateral with dynamic interest rates.

Collateral-backed loans
Variable interest rates

Use Cases:

  • Leverage trading
  • Short positions
  • dApp liquidity

Interest Model

Dynamic Rates

Automated model adjusts rates based on utilization - high demand increases rates, low demand decreases them.

Supply/demand driven
Natural liquidity incentives

Benefits:

  • Fair market rates
  • Automatic balancing

User Guide & FAQ

Everything you need to know to get started with Peridot

Assets & Wallets

Supported Assets

ETH, USDC, DAI, and other major cryptocurrencies for earning yield and borrowing on-chain.

Compatible Wallets

MetaMask, WalletConnect, hardware wallets, and other Web3-compatible wallets.

Fees & Costs

Protocol Fees

Zero upfront fees. Only blockchain gas fees for transactions.

Network Costs

Ethereum has higher gas fees. Layer 2 and alternative chains offer lower costs.

Collateral & Risk

How is my collateral managed?

Supplied assets are held in transparent, auditable smart contracts to back over-collateralized loans while earning interest.

What happens if my collateral value drops?

If your health factor falls below the threshold, up to 50% of your debt can be liquidated, plus a liquidation penalty.

Who can initiate liquidations?

Any network participant can trigger liquidation on under-collateralized positions, incentivized by a bonus on seized collateral.

How can I avoid liquidation?

Keep your collateralization ratio safely above the liquidation threshold and monitor your health factor closely.

Interest & Returns

How is APY calculated?

Interest compounds per block based on current supply rate and block time, following standard DeFi yield formulas.

Are there APY limits?

Certain markets may have caps or range bounds set by governance to manage risk and ensure stability.

Security & Transparency

Has Peridot been audited?

Yes—contracts undergo regular third-party audits by leading security firms, with full audit reports publicly available.

What if there's a vulnerability?

Peridot maintains a bug bounty program to reward responsible disclosures and patch issues proactively.

Governance & Rewards

Is there a governance token?

Peridot's native token grants holders voting rights on asset listings, protocol upgrades, and parameter changes.

How do I participate in governance?

Connect your wallet to the governance portal to propose, vote, or delegate—and earn participation rewards.

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Summary

The future of decentralized finance, built for everyone

Multi-Chain Money Markets

Effective crypto asset markets across multiple blockchains with transparent operations

Dynamic Interest Rates

Algorithmically adjusted rates responding to real-time supply and demand

Trustless Yield Generation

Earn interest on assets without relying on centralized entities

Instant Liquidity

Immediate loans with assets as collateral, no waiting periods required

Financial Infrastructure

Stable, decentralized foundation for the future of blockchain finance

Ready to experience the future of DeFi?

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