Mechanics
Yield sources
Where the additional return comes from — and where it doesn't.
| Source | How it is earned | Always available? |
|---|---|---|
| Trading fees | The liquidity strategy earns a fee on swaps that route through it. | Yes, volume permitting |
| Stablecoin lending | Idle stablecoins rest in an approved ERC-4626 lending vault. | Yes |
| Stock lending | The stock allocation lends into an approved, liquid borrow market. | No — depends on the market |
| Compounding | All of the above is harvested and reinvested. | Yes |
When stock lending is unavailable
Stock lending yield is only used where an approved, liquid borrow market exists with real borrower demand. When it doesn't, the stock allocation is used only in the liquidity strategy or left idle — HoodFold does not display stock-lending income that isn't there. The architecture supports both 2-yield and 3-yield modes without changing the UX.