DINAR

Stablecoin lending protocol based on ALEO chain
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Dinar Abstract

Dinar is an innovative decentralized lending protocol built on ALEO Chair's privacy-protecting technology By pledging ALEO tokens, users can mint Dinac a stable coin. In addition, the protocol supports the pledge function of on-chain POS nodes, freeing up a portion of the pledge proceeds for liquidity needs

Dinar introduces a flat-dollar AM, similar in functionality to MER, mainly for governance and protocol parameter tuning. Through dynamic interest rate mechanism privacy protection technology and multi-mortgage model, Dinar protocol enables ALED ecosystem while creating a new stablecoin application scenario in Defi field

PROJECT BACKGROUND

01.
Industry Status and Pain Points

Limitations of the Single Mortgage Model

Many stable coins in the current market rely on a single on chain asset as collateral, which is susceptible to market fluctuations and lacks real asset support resulting in insufficient stability and risk

Lack of
Privacy Protection

The lending protocols on traditional public chains cannot effectively protect users' asset information and transaction privacy, which poses obstacles for some high net worth users and users with high privacy re-quirements.

Unmet Needs in the ALEO Ecosystem

Despite the large scale and strong technical strength of the ALEO community, its token price continues to de-cline. This trend has led to miners and users urgently needing lending services to manage liquidity. However, existing lending agreements have not fully supported the special needs of the ALEO ecosystem.

02.
Dinar's Innovative Solutions

On-Chain Privacy Guarantees

Utilizing z-SNARKs technology, the Dinar protocol ensures the privacy of user transactions while maintaining complete decentralization.

Support Diversified Mortgage Models

In addition to supporting the traditional mortgage model, the agreement also allows POS nodes to pledge, freeing up 10% of the pledged proceeds to meet more liquidity needs.

Introduction of AMR Flat NT Dollar

Dinar enables community governance, protocol alignment and risk management through AMR, enabling users to participate in the core decisions of the protocol.

03.
Core Function

Loan and Mortgage

Users can mortgage Dinar tokens and receive Dian stablecoins through the agreement, and the borrowing rate is dynamically adjusted according to supply and demand. All operations are done through smart contracts, ensuring transparency and automation.

POS Node Pledge Support

Users are allowed to pledge Dinar tokens in POS nodes and use 10% of the node's proceeds to mint stablecoins. This feature not only releases more liquidity, but also further improves the usage scenario of the protocol.

Dynamic Interest Rate Mechanism

Dinar's lending rates are determined by supply and demand, ensuring market liquidity while avoiding extreme interest rate fluctuations through intelligent algorithms.

AMR Flat NT Dollar Function

AMR is the native governance token forthe Dinar protocol and has the following features:

Governance voting: AMR holders can participate in the governance of the agreement, including adjustment of lending rates, modification of mortgage parameters, etc.

Risk management: When the system is exposed to extreme risk, AMR can be used as a clearing vehicle to provide additional liquidity support to the agreement.

Expense Repurchase and Destruction: The agreement uses a portion of the processing costs incurred in the lending operation to repurchase AMR on the market and destroy it, thereby increasing the scarcity and value of AMR.

04.
Technical Architecture

Privacy Protection Technology

  • Implementation of zk-SNARKs

    • Dinar protocol adopts ALEO chain native zk-SNARKs (Zero-Knowl-edge Succinct Non-Interactive Argument of Knowledge) technology to ensure that users can prove the legality of transactions when lending and trading operations. Without giving away any specific infor-mation.

  • User privacy protection

    • The Dinar protocol protects user privacy in the follow-ing scenarios:

    Loan operation: The amount of the user's mortgage and loan is only transparent to the smart contract, and is completely hidden from other users.

    POS pledge: The user's node pledge record adopts zero-knowledge proof protection, which only verifies that it meets the minimum mortgage conditions, and does not disclose the specific pledge number.

Multi-Mortgage Model Design

Dinar protocol adopts the on-chain pledge model to maximize the value support and risk resistance of sta-blecoins.
  • On-chain mortgage

    • Users can pledge ALEO tokens through Dinar protocol smart contracts, which store the following parameters on the chain:

    Mortgage amount
    Loan amount
    Dynamic interest rate calculation results
    Dynamic interest rate calculation formula:
    r=DS+Br = \frac{DHS} +Br =SD +B where:
    rrr: Lending rate
    DDD: Current market demand for loans
    SSS: Current market liquidity
    BBB: Base rate, set by the agreed regulatory parameters
05.
Technology Interaction Process