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Incentives are a key driver in DeFi, and PWN is no exception. Below is a summary of how incentives will be accounted for on the platform. |
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What Incentives Are Offered?
While PWN doesn’t have its own token, the platform will distribute reputation rewards, rewarding active usage and contributions to the PWN ecosystem.
Additionally, third-party incentives (points or tokens) will be distributed by selected projects integrated with PWN. Please note that PWN does not control or hold custody over these rewards, and they will be claimable according to the partner project's claiming processes.
Similar to other lending platforms, both lenders and borrowers will receive rewards.
Borrowers will earn incentives based on the value of the credit and interest repaid. Incentives are earned when borrower repays a loan.
Simply posting a borrowing proposal does not qualify borrowers for incentives.
In case of default (failure to repay the loan and interest), the collateral will be transferred to the lender and borrower doesn't earn any rewards. Be sure to repay your loans on time to retain your rewards!
Lenders will receive incentives based on the amount of capital lent (credit). These incentives are earned once a lender accepts a borrowing proposal, or when a borrower accepts the lender’s proposal.
Just posting a lending proposal does not qualify lenders for incentives.
If a borrower defaults, the lender will receive the collateral and keep the earned rewards.
- Mark wants to use $100,000 worth of $ABC as collateral to borrow 50,000 USDC with fixed interest of 10 %.
- James agrees to lend 50,000 USDC to Mark and accepts his proposal.
- Rewards will accrue as follows:
- Mark will be incentivized based on the 50,000 USDC of credit and 5,000 USDC of interest. He'll earn 55 rep when he repays the loan.
- James will be incentivized based on the 50,000 USDC he lent and earn 50 rep when he funds the loan.
If Mark fails to repay the loan, James will keep his earned rewards and get to claim the $ABC collateral.