Loka is a Meta Layer with Native Yield Protocol for Bitcoin that accrues value from the Bitcoin mining economy.
The holders of lokBTC have their token quantity rebased every 24 hours to match the TVL in LBLP that is accruing value from the Bitcoin mining reward by providing liquidity and financing Bitcoin miners:
The mining pool uses FPPS (Full Pay Per Share) and monetizes from the delta between the coinbase reward + transaction fees from the Bitcoin network and the daily payout to miners for 2% fees.
This fee is distributed back to the LBLP.
Since the Trove is fully collateralized with Bitcoin, the Trove holders can lock their Trove as collateral and borrow lokBTC, subject to a 0.5% fee to borrow and 0.5% to repay the loan.
The fees are also distributed back to the LBLP.
Each lokBTC transfer will incur a small fee in sats (equivalent to a few cents $) that is circulated back to the LBLP.
Due to the dynamic nature of the business, the APY of lokBTC is floating and depends on: