PLEND Emissions and Max Liquidity Locking APR

PLEND Emissions

Users who deposit but do not add value to the PulseLend protocol will still earn the standard market rates, but they will not be eligible for PLEND emissions. To activate PLEND emissions on deposits and borrows, users are required to lock a minimum of 5% Liquidity tokens relative to the size of their deposits (in USD terms).

Examples:

• User 1: Makes a deposit of $1M USDC on PulseLend with $0 of Liquidity tokens locked. They earn a base rate (APY) but aren't eligible for incentivized emissions.

• User 2: Makes a deposit of $1,000 USDC on PulseLend with $50 Liquidity tokens locked. They qualify for PLEND emissions, provided the minimum 5% threshold is met.

This approach creates a self-perpetuating cycle that attracts long-term liquidity and rewards those who align with the long-term success of the protocol.

Max Liquidity Locking APR On the Markets Page, users can review the Max Liquidity Locking APR and a breakdown of the APR per asset.

How is the Maximum Locking APR calculated?

• Definition: The current maximum Liquidity locking APR for a 1 year lock duration

• Calculation: The 1 Month Locking APR multiplied by the 1 Year Lock Multiplier (25x)

The 1 month locking APR:

• Definition: The current locking APR for a 1 month duration

• Calculation: The share of Total 1 Month Locked Annualized Protocol Fees divided by the Total 1 Month Locked share of the Liquidity Pool Size

The share of 1 Month Locked Protocol Fees:

• Calculation: The 1 Month Locked Share of Protocol Power divided by the Total Protocol Locking Power

The Total Protocol Locking Power:

• Calculation: The sum of (1 Month Locked Share of Liquidity Pool Size * 1 Month Locked Multiplier (currently 1x)), (3 Month Locked Share of Liquidity Pool Size * 3 Month Locked Multipler (currently 4x)), (6 month Locked Share of Liquidity Pool Size * 6 month Locked Multiplier (currently 10x)), and (12 month Locked Share of Liquidity Pool Size * 12 Month Locked Multipler). This gives the Total Protocol Locking Power.