> For the complete documentation index, see [llms.txt](https://mars-protocol.gitbook.io/mars-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mars-protocol.gitbook.io/mars-protocol/mars-onboarding/the-impact.md).

# The Impact

One of the most crucial primitives of any DeFi ecosystem is credit functionality. Until now, on-chain credit protocols with overcollateralized loans have emerged as the winning architecture to achieve this in a decentralized, non-custodial way. Like existing credit protocols, Mars' interest rates are priced algorithmically based on utilization rate and launched with a standard, two-slope rate model (similar to Aave or Compound).

In addition, Mars brings outstanding improvements in several key areas: 

* Contract-to-Contract (C2C) lending, allowing for uncollateralized loans and options for leveraged yield farming
* Dynamic interest rate model based on control theory, allowing for greater responsiveness and capital efficiency, which is expected to be activated in the future (contingent on governance approval)
* Advanced charting and analytics for depositors and borrowers
* Outstanding user experience and design work to make Mars as elegant and straightforward to interact with as possible

In short, Mars is a next-generation credit protocol for Terra that was built to improve on the collateral and design constraints of existing protocols. Mars Protocol will be the foundation for a new constellation of not just financial products but of governance and collaboration, too. We aim to seed life on a new planet… one that takes the best of the old world and uses it to build something radically new.