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Protocol Fees (Revenues)

LayerBank is a lending protocol that derives its main revenue from the interest paid by borrowers.
Protocol revenue sources:
  • Borrower's interest fees
  • Liquidation penalty fees
  • Fees for claiming platform revenue share
LayerBank plans to distribute protocol revenue, excluding supplier yield, as follows:
  • 10% to LAB stakers (distributed weekly by buying back LAB tokens from the market)
  • 50% to LAB - LP liquidity provision
  • 30% to DAO
  • 10% to reserves (treasury, insurance fund)
Additionally, when $LAB stakers claim their share of platform revenue (e.g., Ethereum, USDC, etc.), a 5% fee is charged. This fee is designed to permanently reduce the supply of LAB, driving long-term value appreciation. As LayerBank grows, the value of $LAB is expected to increase, which in turn enhances liquidity and contributes to the overall sustainability of the protocol.