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