Rebates Program

The Rebates Program rewards users for providing liquidity, locking capital, and actively trading on the protocol. It applies to both core products: Locked Yield and the Interest Rate Swaps (IRS) market.

The program is designed to align user incentives with protocol efficiency—improving pricing, execution quality, and depth across fixed-rate and floating-rate markets.

What is the Rebates Program?

The Rebates Program distributes additional yield and trading rewards to eligible users who:

  • Lock capital in Locked Yield positions

  • Contribute collateral to protocol liquidity via XLP-S

  • Actively trade in the Interest Rate Swaps market

Rewards are paid as APY enhancements for Locked Yield and as USDC incentives for IRS traders.

Why Rebates Exist

Rebates serve three core goals:

  1. Improve execution quality Locked Yield is powered by swaps and floating-rate lending. Rebates incentivize longer and more stable capital deployment, improving routing and pricing.

  2. Strengthen protocol liquidity Optional collateral placement into XLP-S increases available senior liquidity, supporting tighter spreads and better fixed rates.

  3. Reward active market participation IRS rebates incentivize volume, liquidity provision, and price discovery through competitive trading.

How Rebates Work

Locked Yield Rebates

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Eligibility conditions:

  • Minimum tenor: 1 day

  • Maximum tenor: 1 year

  • Minimum notional: $1,000 (USD-equivalent)

Optional XLP-S Collateral Rebate

If the user opts in, unused lending tokens (e.g. interest-bearing tokens such as a-tokens) may be allocated as collateral to XLP-S, the protocol’s senior liquidity provider vault.

This opt-in provides:

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Additional +0.5% APY rebate

  • Same tenor and notional restrictions as the base Locked Yield rebate

XLP-S collateral is used to improve protocol liquidity and execution efficiency, which may enhance fixed borrowing and lending rates system-wide.

Interest Rate Swaps (IRS) Trading Rebates

IRS rebates are distributed via a leaderboardarrow-up-right-based rewards campaign.

  • Total rewards pool: 50,000 USDC

  • Distribution: End of the rebates campaign

  • Criteria: Based on trading activity and leaderboard ranking by volume

Exact leaderboard metrics and campaign timelines are published separately and may evolve over time.

Summary

Product
Rebate Type
Reward

Locked Yield

Base rebate

+0.2% APY

Locked Yield + XLP-S

Additional rebate

+0.5% APY

IRS Trading

Leaderboard rewards

50,000 USDC pool

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