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Creda uses two mechanisms for protocol revenue: a take rate on supplied balances and a reserve factor from borrower interest.

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Take Rate (on supply)

  • Dynamic annual fee applied to supplied balances, configured per asset via governance
  • Can be configured as:
    • Fixed rate: Constant percentage (e.g., 2% yearly)
    • Utilization-based curve: Rate varies with market utilization
  • Example: 2% yearly on 1,000 USDC → 20 USDC
  • Each asset can have unique take rate parameters set by governance

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Reserve Factor (from borrow interest)

  • Portion of borrower interest kept by protocol, configured per asset via governance
  • Can be configured as:
    • Fixed rate: Constant percentage of borrow interest
    • Utilization-based curve: Rate increases with utilization (higher risk → higher protocol reserves)
  • Supply APY ≈ Borrow APY × Utilization × (1 − Reserve Factor)
  • Higher utilization can trigger higher reserve rates to protect the protocol during riskier market conditions
Combined impact determines your net supply yield. Check the market UI for each asset’s parameters.