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.