# Yield Reward System

**Revenue Sources Distributed to $stKLD Holders:**

* Lending & Borrowing → **2% interest spread fees**.
* Liquidations → **8% liquidation penalty fees**.
* KaleidoSwap DEX → **0.3% swap fees** (protocol share).
* IDO Launchpad → **listing + fundraising fees**.

**Distribution:**

* 40% of all protocol revenues → Distributed to $stKLD holders as **real yield**.
* Paid in **stablecoins (USDC)** and other collected assets, not in inflationary $KLD.

### Benefits of $stKLD

* **Real Yield:** Earn sustainable income from actual protocol revenue.
* **Liquidity:** Unlike locked staking, $stKLD is transferable and usable in DeFi.
* **Governance Rights:** $stKLD gives holders governance power in Kaleido DAO.
* **Boosted Yields:** Farming and launchpad allocations offer **higher multipliers** for $stKLD holders.
* **Deflationary Support:** A portion of revenues (20%) go to $KLD buyback & burn, indirectly boosting $stKLD value.
