Lends
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  • 🚨Read Me First
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    • ⏳L-1 Streaming Swaps
      • ⏩Can I speed up my swap execution?
      • 🌟Why are Streaming Swaps better than regular swaps?
    • ♻️THORFi Lending
      • 🔄What collateral can I use to take out a loan?
      • 🚦Is there unlimited lending capacity?
      • 📑How are stablecoin loans accounted?
    • 🤑THORFi Savers
      • 🔰Where does the yield come from?
      • 🔴Is there any risk of losing my coins?
    • 💧Liquidity
      • 👨‍🏫How are fees calculated for liquidity transactions?
      • ➡️Impermanent Loss Protection (ILP)?
      • 🤷‍♂️Difference between symmetric and asymmetric deposits?
    • 🤝P2P Lending
      • 💧Liquidity Provider
      • ⚖️Leverage Taker
      • 💹Key Features
      • 🔮Oracle
      • 🛡️Managing Liquidations
      • ❓FAQs
  • tokenomics
    • 🪙Token Distribution
    • 💸Revenue Model
    • 🚀Value Accrual
    • 🗺️Product Roadmap
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  • 📊 Lends Protocol's Economic Model
  • 💰 GMX-Inspired Fee Distribution
  1. tokenomics

Revenue Model

📊 Lends Protocol's Economic Model

The Lends protocol employs a sustainable economic model that aims to create value for all participants. It does this by charging a 10% fee on the interest received by lenders. This revenue generated is then divided between liquidity providers and stakers. Specifically, 70% of these revenues are returned to liquidity providers, while the remaining 30% are used to reward stakers.

💰 GMX-Inspired Fee Distribution

The distribution of protocol fees follows a GMX-inspired model. This model is designed to ensure a fair distribution of rewards and incentives for both liquidity providers and Lends token stakers. By adopting this approach, the LENDS protocol encourages users to actively contribute to the platform, fostering a healthy ecosystem that benefits all participants.

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Last updated 10 months ago

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