User Incentives

The importance of incentives 

Colend’s governance model is designed to align user participation with the protocol’s long-term health. These incentives encourage users to contribute to its development while also benefiting from their involvement. By combining individual rewards with collective progress, this approach strengthens the entire ecosystem.

Vote to reduce your borrowing costs

As a xCLND holder, you play a direct role in shaping the protocol by voting on how token emissions (APYs) are distributed across liquidity pools. It allows you to reduce the borrowing cost of the pool you’ve borrowed from by voting for it.

It helps you optimize your net APY while maintaining the pool’s attractiveness for lenders, creating a balanced and efficient ecosystem for all participants. Learn how to vote here.

Earn extra rewards

Participating in governance also provides direct rewards. When you vote, you earn bribes from participants who incentivize votes for the pools they’ve borrowed from. The bribes you receive are proportional to the amount of xCLND you’ve locked and your voting activity, ensuring fair reward distribution.

Note : When you vote for a pool, you reduce the borrowing cost for all borrowers in that pool, and it will also increase your own supply APY in the future. Your vote helps others, but it will also reward you.

The DAO incentives are carefully designed to align user actions with the protocol’s broader objectives. By rewarding active participation, Colend creates a symbiotic relationship between its users and the ecosystem.

To start participating in Colend governance, convert your CLND into xCLND.