Incentive Programs

USDU Finance strategically reinvests protocol-generated income to accelerate ecosystem growth and liquidity depth. The incentives are not funded by user fees but by actual lending revenue captured by the protocol through governance-approved minting modules.

Incentive Program Types:

• Liquidity Incentives Protocol income is used to provide incentives (such as bribes) to Curve, Morpho, and other key DeFi markets. This deepens $USDu liquidity and ensures efficient on-chain markets.

• Borrowing Incentives When needed, protocol revenue can subsidize borrowing rates for $USDu in supported lending markets. This allows certain positions to even achieve negative net borrowing costs, encouraging demand and usage of $USDu.

• Partnership Incentives $USDu works with other stablecoin protocols, DAOs, and DeFi projects to co-incentivize liquidity pools and lending pairs, helping other projects bootstrap liquidity while driving $USDu adoption.

Design Principles:

• Incentives are entirely organic, funded from lending yield that protocol-owned positions earn.

• The goal is not to create artificial demand but to support genuine market growth with sustainable incentives.

• Incentives are flexible and directed via governance-approved programs.

Resulting Benefits:

• Stronger liquidity for $USDu and its trading pairs

• More attractive markets for both borrowers and lenders

• Broader adoption across DeFi lending and trading ecosystems