System Discounts

Membrane interest rate discounts for network contributors

Membrane only charges fees that are crucial for protocol functions, the 2 types being: loan interest & liquidation fees. Interest enables influence over supply&demand while liquidation fees add a cost to unintended liquidation use cases. This leaves interest rates as the only fee that we can reasonably add discounts for (at the moment).

All of the discounts are based on the user's "value in network" in proportion to outstanding CDT loans, meaning 100 CDT worth of value is necessary to get an 100% discount on the interest for 100 CDT, 90.9% discount for 110 CDT. This enables user's contributing to the overall resilience of the network to take full advantage of any rate arbitrage opportunities.

This means LPs can profitably provide liquidity at lower yields (note: currently unused) & stakers get guaranteed discounts for backstopping the supply.

Note: All of these contracts accrue your positions ' discount before withdrawals

Discount for	Qualifier
MBRN	Staked & based on market price. Includes pending rewards.
LPs	Any LPs in accepted CDT LP incentive gauges (minimum 7 day lock)