Indigo Proposes Cashback for Cardano Loans and iUSD Swaps

Indigo don propose one cashback program for people wey dey use im Cardano lending and PSM swap services. Dem announce am on September 22, and the plan go use the average amount of INDY wey person stake for one month to decide eligibility for two separate rebates.

How the Two Cashback Rebates Would Work

The first rebate go return small part of the interest wey don add up on any active Indigo loan. The second one go cover part of the fees wey person pay through PSM, Indigo swap module for im synthetic dollar. Both minting and redemption dey included for the examples wey dem publish.

The entry threshold na average stake of 10,000 tokens during the monthly calculation period. Indigo don provide one detailed tier: if person stake 50,000 tokens, the person fit collect 10% of loan interest up to $50 per month, plus 50% of PSM fees up to another separate $50 monthly limit.

Na limits per account be this, no be per loan or per transaction. For the 7.5% annual interest rate wey Indigo use for illustration, about $80,000 debt go generate enough interest to reach the $50 interest rebate limit. For the example PSM fee rates, to reach the separate $50 swap rebate go require $20,000 minting volume or $10,000 redemption volume.

How Cashback Fits Indigo’s Cardano DeFi Model

Indigo dey allow Cardano users to deposit collateral, open debt positions and mint synthetic assets. Im governance token don already give stakers access to protocol benefits. The proposed cashback go add another benefit wey connect directly to the costs of using im lending and swap services.

The protocol comot hand from new token emissions for July. Under the proposed design, cashback go dey calculate from the interest and fees wey qualifying user actually pay. Existing staking distributions go continue separately.

Loan interest rates and PSM fees go still dey charge under their existing terms. Indigo describe the rebate as retrospective payment wey dem go do for the end of the applicable period, no be change to the rate wey dem charge when person open loan or when person make swap.

Monthly Eligibility and Payment Details

Indigo don publish the minimum average stake and the example for 50,000 tokens, but dem never release complete table of tiers. Dem never talk how dem go measure the monthly average, which asset dem go take pay, where rebate funding go come from or whether users need to claim payments. Rollout date and formal DAO vote never dey announced.

The method for calculating average stake matter wella for users wey their balances dey change during the month: na im go determine which tier and the account level limits wey go apply to their borrowing and PSM activity.