Scallop gives rewards to users who lend, borrow, and provide liquidity.

Reward for lenders

We’ll have a reward pool that let people to stake their “Market Coin”.

Different “Market Coin” will have different reward rate. Basically, the higher the price, the higher the reward rate.

For example:

Reward for borrowers

We’ll have a reward pool that let people to redeem reward with their “obligation”.

There’re 2 proposals for the borrowing reward.

Proposal A:

Reward the borrower based on how much interest they accrued, and different debt type has different reward ratio.

For example:

Pros: Safe and easy to implement.

Cons: No encouragement for long term borrow

Proposal B: