Lombard @Lombard_Finance offers a 240% interest rate, but how can the price of $BARD be maintained? If this were to happen in the real world, "If you deposit for a year, we give you 240% interest!!!" - Novice: Wow, that's insane! I'm putting in all my money, let's go! - Expert: Are you crazy? Why would you do that? There's a high possibility that the value of the Korean won will plummet in a year, so the real value will likely decrease, lol. ------ So what does Lombard believe in to offer such an interest rate? 1. Initially, they print new $BARD and distribute it, lol. - Then the value will definitely crash. - Instead, they aim to make Lombard famous and increase LBTC minting. - As LBTC minting increases, profits will come from staking yield (currently around 1%), and a portion of this will go to $BARD holders as rewards. 2. DeFi integrated fee sharing. - When LBTC is used on Aave or GMX, fees are generated, and since Lombard attracts BTC liquidity, partners share a portion of it. From the partner's perspective, it's a win-win as their TVL increases, lol. 3. Minting/redemption fees. - When converting BTC to LBTC, they charge around 0.1% in fees, which is expected to be more clearly implemented in the future. ------ This is Lombard's revenue model, but honestly, it seems hard to sustain a 240% APR. The 240% offered on BidPad is just an event supply and will end soon, so I don't think we need to worry about inflation, lol.