LOAN is the secondary token issued by the Liquid Loans protocol. It captures the fee revenue that is generated by the system and incentivizes early adopters.
LOAN rewards will only accrue to Stability Providers, i.e. users who deposit USDL to the Stability Pool and liquidity providers of the USDL:PLS pool.
As technical rewards, they are based on a preprogrammed functionality of the protocol and not on a claim towards Liquid Loans frontend or any third party.
LOAN supply will be announced before deployment.
No. LOAN is not a governance token, as there is no Liquid Loans governance.
LOAN is earned in two ways:
- Depositing USDL into the Stability Pool.
- Providing liquidity to the USDL:PLS pool.
LOAN holders can stake their tokens to earn the fees generated by loan issuance (borrowing fees) and PLS redemptions (redemption fees).