Stake WETH to fund the memecoin pawn-loan pool. Borrowers pay an origination fee on every loan, which accrues to the pool — your stake grows as loans are taken and repaid. This is the liquidity that makes borrowing possible.
There’s no fixed APR here. Every pawn loan charges a Magpie-style origination fee (1.5–3% for memecoins, per tier) that stays in the pool rather than going to the borrower. As loans are taken and repaid, that fee accrues to the pool’s value, so each staker’s share is worth progressively more WETH. Higher utilization means more fee flow.
The tradeoff: stakers also backstop bad debt. If a memecoin crashes below its loan value and nobody liquidates, that loss is realized against the pool. Withdrawals are limited to the pool’s idle (not-currently-lent) liquidity.