Tiered Repayment Fee Discounts and Bonuses for Token Holders
Discount and lender bonus tiers based on LIQ and sLIQ token holdings.
Liquidium.WTF introduced a tiered discount system for repayment fees based on the number of LIQUIDIUM•TOKEN and STAKED•LIQUIDIUM tokens held by borrowers and lenders.
The feature reduces the repayment fee, currently 30% of interest generated on loans, by up to 25% depending on token holdings. Lenders can also earn bonuses that increase their share of interest.
How The System Works
Discounts and bonuses are determined by the number of Liquidium tokens held when a loan is accepted and again when it is repaid. LIQ and sLIQ are treated equally.
Liquidium.WTF only collects a repayment fee if the pre-discount calculated fee is 2,000 sats or more. If no repayment fee is collected, no discount can be applied.
Borrower Discount Tiers
| Token Holdings | Discount on Repayment Fee | Effective Repayment Fee |
|---|---|---|
| 0 - 599 | 0% | 30% |
| 600 - 1,799 | 5% | 28.5% |
| 1,800 - 3,599 | 10% | 27% |
| 3,600 - 5,999 | 15% | 25.5% |
| 6,000 - 11,999 | 20% | 24% |
| >= 12,000 | 25% | 22.5% |
Lender Bonus Tiers
| Token Holdings | Bonus from Repayment Fee | Effective Repayment Fee |
|---|---|---|
| 0 - 599 | 0% | 30% |
| 600 - 1,799 | 5% | 28.5% |
| 1,800 - 3,599 | 10% | 27% |
| 3,600 - 5,999 | 15% | 25.5% |
| 6,000 - 11,999 | 20% | 24% |
| >= 12,000 | 25% | 22.5% |
Eligibility Criteria
- Borrower token holdings are checked at loan acceptance and loan repayment.
- Lender token holdings are checked at loan acceptance and loan repayment.
- Increasing token holdings after loan acceptance does not change the tier for that specific loan.
Discounts and bonus tiers are reviewed quarterly and may be adjusted to align with repayment goals.
