Protocol Economics

AggreLend is designed to feel like a simple, on-chain savings tool: creating a position incurs a small refundable Solana rent fee of 0.00161 SOL, which covers the storage of your position’s PDA and is automatically returned when the position is closed, leaving no trailing cost; there is no performance fee today, and should a performance fee be introduced in the future it will be baked directly into the displayed APY so that the number you see remains the number you earn without mental math or hidden deductions.

Unlike exchange protocols that maintain an insurance fund or a revenue pool to underwrite trading losses, AggreLend’s lend-only design means there is no protocol AMM taking directional inventory risk and no liquidation PnL to socialize, so instead of funding an insurer of last resort we focus on curation—only integrating venues with credible audits, KYB, and operational discipline—and on routing that prefers reliability over momentary peaks; the implication is that yield comes from ordinary lending interest (plus eligible reward programs), not from leverage or market-making spread capture.

Displayed APY reflects the effective in-kind yield after normalizing any venue reward tokens back into the deposit asset using conservative quotes, and rewards—where applicable—are periodically harvested, converted, and re-supplied so that balances compound in the same token you deposited; this keeps accounting straightforward, keeps dashboards truthful, and keeps realized earnings close to the interface number even as venues rotate.

Because liquidity conditions vary, especially for long-tail tokens, routing includes simple governance-free guardrails: if the top venue is too thin for a given deposit size, the router may place only a portion there or prefer the next venue to preserve rate integrity, and if a venue’s utilization or caps would force immediate rate decay, the move is deferred until the improvement is durable, which reduces thrash and preserves user outcomes over headline figures.

Finally, the absence of borrow-looping, structured products, or off-chain credit exposure means there is no protocol-level insolvency waterfall to document here—your risk is the ordinary risk of the underlying integrated venues, which we mitigate by curation and by keeping the AggreLend program small, auditable, and purpose-built for supply-side routing rather than broad DeFi composability for its own sake.