xycLoans Documentation
  • xycLoans Documentation
  • Lenders
    • Welcome
    • Yield
    • Provide and Manage Liquidity
    • Navigating the App's Data
  • Borrowers
    • Borrowing from XycLoans
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  1. Lenders

Yield

PreviousWelcomeNextProvide and Manage Liquidity

Last updated 1 year ago

As a liquidity provider in a xycLoans pool, you earn yield for every borrow lent out by the pool. A xycLoans pool will always earn 0.08% from a single borrow, and this yield is shared among all of the pool's lenders depending on their balance.

For example, if you're providing 10.000 USDC in a USDC pool with a supply of 100.000 USDC, you own 10% of the pool and when a 100.000 flash loan occurs, the pool gains 0.08 USDC, and you have the right to withdraw 10% of those 0.08 USDC, so 0.008 USDC.

The rewards mechanism used in xycLoans can be found at .

https://github.com/xycloo/xycloans/blob/main/pool/src/rewards.rs