LOAN collects the fees

LOAN is the second token on each deployment. The docs on Base and on PulseChain both publish a maximum supply of 5.5 trillion. It is not a governance token. There is no vote that can change the collateral ratio, the fee floor, or the contracts. Staking it does not back the USDL debt. What it does is collect the fees the system already charges.

How it is earned

LOAN accrues to Stability Pool depositors and to liquidity providers of the USDL pool on that chain. On Base that pool is USDL:ETH. On PulseChain it is USDL:PLS. The reward is a function of the contracts, not a claim on a website. Early deposits earn a larger share against the rewards schedule. You can withdraw pending LOAN to your wallet at any time. You can also buy LOAN on a market. USDL itself is not staked. It is deposited in the Stability Pool. ETH and PLS are collateral, not stake.

What staking pays

Deposit LOAN in the staking contract and you earn a pro-rata share of borrowing fees and redemption fees, paid in USDL and in the chain’s collateral. Your share is your fraction of LOAN staked at the moment the fee is taken. There is no lockup on a stake you made. You can withdraw it when you want.

A separate allocation is locked for the team and for advisors, and another is set aside at deployment for bounties and for a liquidity or bonus rewards contract. On PulseChain, team and advisor tokens cannot be touched for a minimum of one year, and during that year the only LOAN freely issued is what Stability Providers receive. On Base, team and advisor tokens pay out a portion monthly during the first year. On both chains the admin address can move LOAN only into verified lockup contracts. It has no other privilege over the protocol after deployment.

The yield paths

• Deposit USDL in the Stability Pool. You take liquidation collateral and you accrue LOAN.
• Stake that LOAN. You take a share of borrow fees and redemption fees.
• Provide liquidity in the USDL pool. That is the other way the rewards page says LOAN is earned.
• Redeem USDL for collateral when the market price is under a dollar. That is the arbitrage the general page lists, and it is a trade, not a staking position.

Those four are the yield paths. A 12-month vault comparison of 31% against gold at 28% and a savings account at 4.6% includes the price of the collateral. It is not a LOAN emission rate.