Staking and Yield

The yield paid to token holders on numun.fi originates from the incentives provided by the issuers of the various tokens listed on the platform. These issuers offer rewards to encourage the growth and adoption of the Numun ecosystem.

Here’s a breakdown of how this works:

1. Token Issuers’ Incentives: Certain issuers of tokens aim to foster a robust and active ecosystem. To achieve this, they may provide rewards to those who hold and stake their tokens. These rewards serve as an incentive for users to invest and engage with their assets.

2. Over-Collateralization Investments: The over-collateralization arises from the investments made using the reserves that collateralize the issued tokens. These investments generate yield, which can then be distributed to token holders.

3. Reward Distribution: The yield generated is distributed to users who hold and stake snStables on Numun.fi.