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  • Introduction
    • Mortgage product
    • Earn product
    • NEW! Refinance
  • How MortgageFi Works
    • Mortgage borrowers
      • Early repayment feature (ERF)
    • Earn - Liquidity Providers
    • Refinancing
  • Getting Started
    • Components
      • Mortgage Vaults
      • Earning Vaults
      • Loan NFTs
      • Defaults
      • ERC20 Integration
    • Points system
      • Liquidity Incentives
      • Referral Incentives
  • FAQ
    • General
  • MortgageFi Ecosystem
    • Contracts
    • Audits
    • Governance Structure
    • Integrate your own token
      • Integration Process
      • Benefits of Integration
      • Considerations
      • How to apply
    • Self-Balancing Protocol
      • Three Pillars
      • Protocol Design
      • How the System Balances
      • Security and Attack Vectors
      • Advantages of This Model
  • Under-Collateralized Loans
    • What are Under-Collateralized Loans?
    • Key Features
    • How it works
    • Risk Management
    • Benefits for Borrowers
  • Compared to other Lending
    • Use Case Example
  • Comparison Examples
    • Funding Rates and Position Stability
    • Zero-Sum Game vs. Mutual Benefit
    • Long-Term Holding vs. Short-Term Trading
    • Risk Profile
    • Costs and Predictability
  • Yield for Earn Vaults
  • Risk Management
    • Risk Management Strategies
    • Risks and Mitigations
    • User Responsibilities
    • Community Risk Management
    • Ongoing Risk Management
  • Strategies
    • Long vs Short-term Strategy
      • Long-term strategy
      • Short-term strategy
      • Comparing the Strategies
    • Hedge against the bear market
    • Cross-Chain Operations
    • Token Sink
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  1. How MortgageFi Works

Earn - Liquidity Providers

Liquidity providers contribute stablecoins to MortgageFi’s earning vaults, which are then used to finance the mortgages. As Mortgage borrowers make their repayments, these funds flow back to the liquidity providers, accruing yield.

Early repayment fees from borrowers who choose to settle their loans ahead of schedule provide an additional boost to yields. Liquidity providers can exit the system at any time through the uniswap pool using the soft-pegged rate available. The peg is sustained as Mortgage borrower repayments and fees flow into the pool. If the peg does not offer a desirable rate at the time you wish to exit simply wait until more funds flow in. In the meantime your stack will continue to grow as the yield flows in.

Remember to compound your yield by pressing the compound button in your dashboard to ensure maximum yield benefit.

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Last updated 1 month ago