Overview
Liquidium has introduced a tiered discount system for platform fees based on the number of Liquidium tokens held by both borrowers and lenders. This feature is designed to reduce the platform fee, which is currently 20% of the interest generated on loans, by up to 25% depending on your token holdings. In addition, lenders can also earn bonuses that increase their share of the interest, making lending more lucrative for users who hold Liquidium tokens.
How the Tiered Discount System Works
The discount on the platform fee is determined by the number of Liquidium tokens you hold at two key points: when you accept a loan and when you repay it. Similarly, lenders can earn a bonus based on their token holdings at both loan acceptance and repayment. The more tokens you hold, the greater the discount or bonus.
Is There Always a Discount?
No. If the loan is small enough, there is no fee.
Liquidium only collects a platform fee if the pre-discount calculated fee is 2000 sats or more. Discounts reduce the platform fee, so if no platform fee is collected, no discount can be applied.
Borrower Discount Tiers
Below are the discount tiers based on the number of Liquidium tokens held by borrowers:
Token Holdings (X Tokens) | Discount on Platform Fee (%) | Effective Platform Fee (%) |
0 - 399 | 0% | 20% |
400 - 1199 | 5% | 19% |
1200 - 2399 | 10% | 18% |
2400 - 3999 | 15% | 17% |
4000 - 7999 | 20% | 16% |
above 8000 | 25% | 15% |
Lender Bonus Tiers
Below are the bonus tiers for lenders based on the number of Liquidium tokens held:
Token Holdings (X Tokens) | Bonus from Platform Fee (%) | Effective Platform Fee (%) |
0 - 399 | 0% | 20% |
400 - 1199 | 5% | 19% |
1200 - 2399 | 10% | 18% |
2400 - 3999 | 15% | 17% |
4000 - 7999 | 20% | 16% |
above 8000 | 25% | 15% |
Lenders with more tokens can keep a larger share of the interest paid by borrowers, increasing their yield.
Eligibility Criteria
To be eligible for a discount or bonus, you must meet the following criteria:
Borrower Token Holdings at Loan Acceptance: Your Liquidium token balance will be checked when you accept a loan. The discount tier will be determined based on the number of tokens you hold at this time.
Borrower Token Holdings at Loan Repayment: Your token balance will be checked again when you repay the loan. You must still hold the minimum number of tokens required for your discount tier to maintain the discount.
Lender Token Holdings at Loan Acceptance: Lenders' token balances will also be checked at loan acceptance to determine the bonus tier.
Lender Token Holdings at Loan Repayment: The lender must still hold the minimum number of tokens at the time the borrower repays the loan to maintain their bonus. Increasing token holdings after loan acceptance will not change the bonus tier for that specific loan.
Note: Increasing your token holdings after loan acceptance will not change the discount or bonus tier for that specific loan.
Automatic Discount and Bonus Application
The discount or bonus is automatically applied during the loan process. The platform verifies your token holdings in real-time through blockchain data to determine and apply the appropriate discount or bonus tier.
Key Points to Remember
Discounts and bonuses are only applied if the required token holdings are maintained at both loan acceptance and repayment.
Discount and bonus tiers and their effectiveness will be reviewed quarterly and may be adjusted to align with platform goals.
This discount system applies to both borrowers and lenders on Liquidium.
Conclusion
The Tiered Platform Fee Discount and Bonus system is designed to reduce borrowing costs for borrowers and increase earnings for lenders who hold Liquidium tokens. By understanding how the discount and bonus tiers work and maintaining the necessary token balance, you can benefit from lower platform fees as a borrower and higher interest as a lender.
For further assistance, please contact our support team.