@neverland-money
“Where does the yield come from?”
Great question! This yield does not come from external boosts or temporary rewards.
The yield for DUST LP incentives comes from Neverland’s protocol revenue. When users borrow assets, they pay interest, most of which goes directly to suppliers. A smaller portion of the interest is directed to the protocol as revenue.
At Neverland, 100% of protocol revenue is directed by DUST lockers. This revenue can be directed to:
- veDUST incentives (max 50%)
- DUST buybacks and burns
- DUST LP incentives
With this in mind, this sustainable yield for providing liquidity will continue indefinitely.
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