Fees and Yield
Fee Structure
Purrlend applies three primary fee mechanisms within the protocol:
Reserve Factor: A portion of the interest accrued from borrower repayments is allocated to the protocol’s insurance fund and treasury as a risk-mitigation buffer.
Liquidation Fees: During liquidation events, a fraction of the liquidation incentive is redirected to the treasury as a protocol fee.
Flash Loan Fee: Flash-loan transactions incur a 0.01% fee, applied to the borrowed amount and returned upon completion of the same transaction.
Deposits and withdrawals incur no protocol fees.
Yield Generation
Lenders earn variable interest derived from borrowing activity within the pool. Rates adjust algorithmically based on real-time supply and demand conditions—higher utilization results in higher lender yields.
In addition, E-Mode within Core Pools improves capital efficiency for assets with highly correlated price behavior, enabling more effective leverage and enhanced yield potential.
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