Referral Program

Aave's referral program consist of a 20% fee-share. This is how it works:

  • Each loan incurs a 0.25% origination fee.

    • 80% of this fee is used to buy LEND tokens from the market and burn them, which reduces the monetary supply of the LEND token.

    • 20% of this fee is redistributed to the referrers.

      • The referrers consist of the liquidity providers (deposit()) and the borrow providers (borrow()).

      • 40% of this fee goes to the liquidity providers (effectively 8% of origination fee).

      • 60% of this fee goes to the borrow providers (effectively 12% of origination fee).

  • For example: A user take out a 1000 DAI loan.

    • Origination fee: 2.50 DAI

      • Amount used to buy and burn LEND: 2 DAI

      • Amount redistributed to referrers: 0.50 DAI

        • Amount going to liquidity providers: 0.20 DAI

        • Amount going to borrow providers: 0.30 DAI

To participate in the referral program, a referralCode must be included in either the deposit() or borrow() calls. You can receive a referralCode by completing the sign up form.

If you do not wish to participate in the program, or need a placeholder during testing, then use the referral code: 0.