Lucia Protocol
  • Welcome to Lucia Protocol
  • Introduction
    • Lucia Protocol
  • PRODUCT FEATURES
    • Features Overview
  • Attribution Credit Scoring System
  • Low Collateralized Ratio (100%)
  • Enhanced Privacy with Zero Knowledge Proofs
  • Default Protection Insurance
  • Lender & Borrower Reward System
  • Virtual Credit Card
  • Flash Loans
  • SYSTEM OVERVIEW
    • Tokenomics
  • The LUCI Token
  • The LCI Token
  • The stLCI Token
  • Barns and Sheds
  • Silos
  • Plots
  • Protocol Owned Liquidity
  • The Treasury
  • System Functionality
    • Borrower Operations
      • Borrowing Fees
  • Lender Operations
  • Silo Operations
  • Redemption Mechanism
  • Credit Reputation
  • Liquidations
  • Credit Default Risk
    • CDI Architecture
    • Smart Contract-based Architecture of CDI System
  • Risk Management
  • Insurance Claims & Entitlements
  • Governance & Investments
  • Rewards System
    • Lenders
  • Borrowers
  • Token Rewards
  • SUMMARY
    • Conclusion
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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.

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Last updated 1 year ago