Ensuring Stability and Security

The HopeLend Protocol Treasury is a fund held within the HopeLend protocol to address potential risks and adverse events, or to cover operational expenses. These reserves are determined by the HOPE community and the economic model of the protocol to maintain the stability and solvency of the protocol.

The funds of HopeLend Protocol Treasury primarily come from:

1. Interest Income

Most of the interest paid by borrowers will be allocated to depositors, while another portion determined by the Reserve Factor will be directed into the HopeLend Protocol Treasury.

2. Liquidation Factor

20% of the liquidation penalty will be directed to the HopeLend Protocol Treasury.

3. Flash Loan Fees

A fee is charged on the borrowed amount of flash loans, and a portion of this fee will be allocated to the HopeLend Protocol Treasury.