PAYE Graph

To incentivize borrowers to use liquidity from our ecosystem to generate as high yield as possible, Stella utilizes a model where the higher the annualized yield, the lower amount to be shared to lenders, and only yields from the leveraged portion are used to calculate the cut.

$$\text{cut} = 0.25 + \frac{0.75}{\left(1+\frac{\text{Yield}_{\text{APR}}}{0.25}\right)^2}$$

Below is a graph illustrating the range of share cuts (Y-axis), which can vary from 25% to 100%, based on the yields generated by leveragoors (X-axis). To navigate through the graph, click here.

Yield shared to lenders based on a leveragoor's generated yield. Note that the graph excludes protocol fee deductions from yield shared to lenders.

Annualized Yield (%)	% Shared	To Leveragoors (%)	To Lenders (%)
0	100	0	0
10	63.27	6.33	3.67
20	48.15	10.37	9.63
50	33.33	33.33	16.67
100	28.00	72.00	28.00
150	26.53	110.20	39.80