Earn on Stablecoins with Lune.fi Earn Pools

For crypto investors looking to generate yield without relying on token incentives or complex DeFi strategies, Lune offers a streamlined alternative through its Earn Pools product. Rather than paying inflationary rewards, Lune structures returns around revenue generated from platform trading activity.

How Lune Earn Pools Work

Lune allows users to deposit supported stablecoins (USDC and USDT) into fixed-term Earn Pools. 

The revenue model is transparent. Lune is a crypto exchange aggregator: when a user wants to buy, sell, or swap cryptocurrency, they select a trading pair, and the routing engine finds the best available rate across liquidity partners in real time. For every successfully completed transaction, the protocol earns a commission ranging from 0.4% to 5.9%, depending on the asset pair, liquidity conditions, and partner terms. Pool participants receive a direct share of this trading revenue, allocated according to their participation and the pool’s distribution rules.

The core mechanics are straightforward:

• Users deposit stablecoins into a selected pool, opting for their lockup term of 1-360 days.
• Funds are deployed to support platform liquidity and trading.
• A portion of trading revenue is shared with pool participants.
• At maturity, users receive unlocked principal.

Profit is credited to your balance every 24 hours and can be used or withdrawn immediately, with the principal deposit being returned at the end of the selected term.

Yield Structure

Lune’s yield model differs from many DeFi platforms in a few important ways:

• Revenue-based returns – Yield is tied to platform trading performance.
• Daily payouts – Profit is paid and available immediately.
• No native token rewards – There is no exchange token inflating supply to subsidize returns.
• Fixed-term participation – Users select a pool duration and commit capital for that period.

This structure can appeal to users who prefer revenue-sharing exposure rather than liquidity mining or token speculation.

Compounding

Lune Earn Pools do not automatically compound yields.

Interest accrues over the selected term and is paid out at the end of that period. To compound returns, users must manually redeposit their funds into a new pool.

Withdrawal Fees

There is no “withdrawal fee” in the way centralized exchanges often have. However:

• Standard blockchain network (gas) fees apply.
• Early withdrawals from Earn Pools result in forfeited interest.
  

Risk Considerations

As with any yield product, returns are compensation for risk. Key considerations include:

• Platform counterparty risk.
• Revenue volatility tied to trading volume.
• Smart contract and operational risk.
• Lack of deposit insurance.
  

Stablecoin yield should not be viewed as risk-free interest. It is a revenue-share product tied to exchange performance.

Lune’s Earn Pools may be a good fit for:

• Crypto holders seeking returns on ETH, USDC and USDT
• Users who prefer consistent returns over token farming.
• Investors comfortable with fixed-term commitments (varying from 1-360 days).

Final Thoughts

Lune positions its Earn Pools as a simplified alternative to complex DeFi yield strategies. By aligning returns with platform trading revenue rather than token emissions, it offers a model centered on operational performance.

For stablecoin holders evaluating yield opportunities, Lune provides a structured, term-based approach that prioritizes revenue sharing over speculative token rewards.