<figure class="wp-block-image size-large"><img width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/07/04233241/LOAN-Staking-2-375x211.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/07/04233241/LOAN-Staking-2-662x372.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/07/04233241/LOAN-Staking-2-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/07/04233241/LOAN-Staking-2.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/07/04233241/LOAN-Staking-2.webp" alt="Loan staking" class="wp-image-3316"/></figure>



<p class="tablecontent">The LOAN Staking Pool APR is not fixed.</p>



<p>It fluctuates up and down based on many different factors.</p>



<p>Let’s learn why the APR moves around to better understand the <a href="https://www.thecoinzone.com/defi/what-is-liquid-loans" target="_blank" rel="noreferrer noopener"><strong>Liquid Loans</strong></a> protocol.</p>



<h2 class="wp-block-heading tablecontent">What is the Loan Staking Pool?</h2>



<p>The Loan Staking Pool allows users to stake<strong> <a href="https://www.thecoinzone.com/pulsechain/loan-token-ultimate-guide" target="_blank" rel="noreferrer noopener">LOAN Token</a></strong> to earn a portion of the borrowing and redemption fees of the protocol.</p>



<p>Anytime a user borrows <a href="https://www.thecoinzone.com/liquidloans/usdl-crypto" target="_blank" rel="noreferrer noopener"><strong>USDL</strong></a> they pay a fee which is 0.5-5% of the PLS in their vault. This PLS is paid instantly to the LOAN staking pool.</p>



<p>Anytime a user redeems USDL for PLS they pay the same fee, but this time it is in USDL.</p>



<p>LOAN stakers earn fees proportional to their share of the pool.</p>



<p>For example, if the total fees of the day are 1,000,000 USD worth of USDL and PLS, and a user owns 1% of the pool, they will earn $10,000 that day. </p>



<figure class="wp-block-image size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/07/04233748/LOAN-Staking-1-375x211.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/07/04233748/LOAN-Staking-1-662x372.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/07/04233748/LOAN-Staking-1-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/07/04233748/LOAN-Staking-1.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/07/04233748/LOAN-Staking-1.webp" alt="Loan Staking Pool" class="wp-image-3317"/></figure>



<h2 class="wp-block-heading tablecontent">What Factors Influence LOAN Staking Pool APR?</h2>



<p>The equation which determines staking pool APR is:</p>



<p>Your fees = (Redemption Fees (# of USDL * Price USDL) + Borrowing Fees (# of PLS * Price PLS) ) / Your share of the staking pool</p>



<h5 class="wp-block-heading">1. Amount of Fees</h5>



<p>The most obvious factor is the amount of borrowing and redemption fees. If users are borrowing and redeeming more often and in higher amounts the fees will increase. </p>



<p>The amount of fees is determined by interest in borrowing and redeeming as well as the prices of PLS and USDL.</p>



<h5 class="wp-block-heading">2. Borrowing and Redemption Fee Rates</h5>



<p>Fees for borrowing and redemption fees are variable between 0.5% and 5%. They fluctuate as a function of the demand for borrowing and redeeming. </p>



<h5 class="wp-block-heading">3. Your Share in the Pool</h5>



<p>The more <a href="https://www.thecoinzone.com/liquidloans/loan-token-value-proposition/" data-wpil-monitor-id="1243">LOAN token</a> you have staked compared to everybody else determines the percentage of the fees you receive. </p>



<h2 class="wp-block-heading tablecontent">The Bottom Line</h2>



<p>The LOAN staking pool APR will be higher at times and lower at times.</p>



<p>Before deciding to buy LOAN token and stake it, it is important to understand the factors that influence payouts. </p>

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