BANANA Incentives

To incentive lending and borrowing in an efficient, sustainable, and profitable way, the ApeSwap Lending Network uses a smart contract called a Rainmaker.

What is a "Rainmaker"?

A "Rainmaker" is a smart contract that facilitates the distribution of reward tokens across a lending network. The ApeSwap Lending Network uses a Rainmaker that takes in BANANA rewards at a rate of 1 of the 11 BANANA minted per block, and then divides those BANANA across the network.
Each lending market, including both Supply and Borrow markets, is assigned a Rainmaker "speed". This determines how many BANANA rewards are allocated by the Rainmaker from the 1 BANANA per block assigned to the ApeSwap Lending Network and to each individual market.

Rainmaker & Rewards

ApeSwap constantly monitors the Lending Network to ensure that the protocol offers sufficient liquidity, utilization rates are managed effectively, and that market incentives are aligned to ensure the long-term health of the platform. In practice, this means that ApeSwap adjusts the Rainmaker speeds of each market as necessary to balance the distribution of BANANA rewards and improve the efficiency of the network. Any network that is not incentivized is assigned a Rainmaker speed of zero, and rewards are not distributed to that market. Supply markets with a speed of zero still earn interest as normal, but no additional BANANA rewards.
NOTE: Not all markets are incentivized with BANANA rewards, and distribution rewards are not fixed! Check both the Supply APY/Borrow APY and the Distribution APY before providing collateral or borrowing assets, and be sure to monitor APYs on an ongoing basis.