Pay-out Scheme
The resources that the supplier is entitled to can be divided into two categories: (1) staking rewards and (2) Interest earnings
Staking rewards
Gable validator node charges a 100% fee on staking rewards earned by participants. However, instead of keeping this fee, the protocol facilitates the direct deposit of staking rewards into the liquidity pool. As a result, the effective staking fee for suppliers becomes 0%, as they can retrieve their staking rewards from the liquidity pool. This setup enables suppliers to participate in the staking process without incurring any direct fees, allowing them to fully benefit from the rewards generated by their staked assets. It aligns the interests of the protocol and the suppliers, creating a fair and transparent system for liquidity provision and staking participation.
Interest earnings
You may wonder, how does Gable earn revenue? Gable generates revenue through the issuance of lending products to borrowers. The funds for these products are financed by the staking rewards contributed by our suppliers. The interest earnings generated from the lending activities are then divided equally between the suppliers and the protocol. This means that both parties receive an equal share of the interest earnings, providing a fair and balanced distribution of the generated profits. By sharing the rewards in this manner, we incentivize suppliers to contribute their assets and participate in the liquidity pool, fostering a mutually beneficial ecosystem for all stakeholders involved.
The following table illustrates the composition of earnings:
Staking rewards
100%
0%
Interest Earnings
50%
50%
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