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.