# External Revenue Heart’s Law generates external revenue through a process called rehypothecation. This approach ensures that the protocol can consistently fund rewards without relying solely on new user transactions or token price increase. ## **What is Rehypothecation?** Rehypothecation involves using staked assets within the protocol to generate external revenue for the protocol. Heart’s Law leverages the PulseX farm, where the protocol earns INC tokens as a reward. ## **How It Works** **Using Assets to Farm** Heart’s Law leverages the assets within the protocol (DAI-WPLS LP tokens) to earn external rewards through the PulseX farm. **Revenue Collection** The rewards earned (INC) are collected with a percentage reinvested into the protocol. **Boosting User Rewards** The external revenue generated is used to contribute to the Reward Pool, Prize Pool, and randomly for Boost Rewards and other protocol beneficial incentives. ## **Why External Revenue Matters** * **No Ponzinomics:** External revenue ensures rewards are funded independently of new user inflows or token price increases. * **No Impact on User Assets**: Staked assets remain secure within the protocol while being utilized to generate additional revenue. * **User Benefits**: 50% of the total income directly funds user rewards creating long-term value for the community. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://hearts-law.gitbook.io/heartslaw/external-revenue.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.