Premium Distribution
How the 0.09% Flash Loan Premium is Distributed:
Premium Calculation The 0.09% fee is calculated based on the amount borrowed:
Premium is Added to the Liquidity Index
_reserves[vars.currentAsset].cumulateToLiquidityIndex()
updates the liquidity index for the borrowed asset.Premium is Sent to the Corresponding zToken Contract The borrowed amount + premium is sent back to the
zToken
contract (e.g., zZBU for ZBU).
Liquidity Providers Earn More Rewards
The premium increases the exchange rate between zTokens and the underlying asset.
Liquidity providers benefit proportionally based on the amount of zTokens they hold.
Last updated
Was this helpful?