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.