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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.
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.