Earn - Liquidity Providers

Liquidity providers contribute stablecoins to MortgageFi’s earning vaults, which are then used to purchase inventory for users who create mortgage contracts. Whilst holding our Earn tokens which are soft-pegged to USD you will earn yield. 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. How much yield will you earn? The amount of yield you will earn is determined by interest rates at which mortgage users have borrowed at which is determined by the pools utilisation at the time of borrowing plus all early repayment fees. Both repayments and ERF are subject to 10% protocol fees to help fund protocol developments. In a healthy borrowing environment where borrowers are maintaining their loans without defaulting you can expect interest rates to range from at least 11-17%. Exiting your Earn position Liquidity providers can exit the system at any time through the associated uniswap pool (using the soft-pegged USD rate available) or they can choose to use the redeemer in the Earn section of the Dashboard to guarantee a 1:1 trade to USD denominated stablecoins such as USDC and Tether (USDT). The uniswap pool peg is sustained by users who purchase the Earn token with stablecoins when their value is below peg. Here's a diagram that shows how Earn users fit into the Mortgage vault ecosystem:

Compound your yield

Remember to compound your yield by pressing the compound button in your Dashboard to ensure maximum yield benefit whilst your position is active.