> For the complete documentation index, see [llms.txt](https://lucia-protocol.gitbook.io/lucia-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lucia-protocol.gitbook.io/lucia-protocol/lender-and-borrower-reward-system.md). # Lender & Borrower Reward System The Lucia Protocol establishes a compelling reward system for liquidity providers or lenders, encouraging them to contribute various supported assets such as USDC, USDT, AVAX, MATIC, and ETH into the liquidity pool. In doing so, they bolster the protocol's overall liquidity and operational efficiency. Furthermore, lenders have the unique opportunity to fund specific asset pairs like USDC/MATIC, thereby enriching the scope of their financial engagement with the protocol. **Lender Incentives** Lucia Protocol will introduce the issuance of NFTs that represent bundled assets and liquidity. These NFTs also confer entitlements to specific rewards and interests. By making these NFTs tradable on secondary markets, Lucia Protocol offers lenders a novel mechanism to exit their liquidity positions prior to loan maturity if desired. **Borrower Incentives** For borrowers, Lucia Protocol goes beyond basic loan facilitation by incentivizing responsible financial conduct. Borrowers who meet their repayment obligations punctually and without incurring penalties stand to receive rewards in the form of cashback. Specifically, these rewards are dispensed as a 3.5% cashback in Lucia Protocol's native token, LUCI. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://lucia-protocol.gitbook.io/lucia-protocol/lender-and-borrower-reward-system.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.