How Do I Reduce Fees by Staking LOAN?

Overview

Users can reduce Loan Protocol withdrawal fees by staking LOAN tokens.

The amount of fee reduction is determined by your staking weight, which includes both:

• The amount of staked LOAN
• Any staking multiplier earned through longer staking durations (sLOAN)

Higher staking weights result in larger fee discounts.

Fee Reduction Tiers

A 100% discount eliminates withdrawal fees entirely.

How Staking Weight Is Calculated

The protocol uses your effective staking weight rather than only the number of LOAN tokens staked.

Staking weight includes the multiplier received from longer staking commitments.

Formula:

Staking Weight = Staked LOAN × Staking Multiplier

Example

If a user stakes:

• 2.5 million LOAN
• With a 4x staking multiplier

Their effective staking weight becomes:

2.5M × 4 = 10M staking weight

This qualifies the user for the 100% fee reduction tier, eliminating withdrawal fees completely.

Important Notes

• Only staked LOAN counts toward fee reductions.
• sLOAN staking duration multipliers are included when calculating staking weight.
• Fee discounts are automatically applied when eligible withdrawals occur.