Returns are generated through secured, over-collateralised lending activity on established on-chain credit markets such as Morpho, Aave, and Maker.
Byzantine Prime allocates capital into these protocols, where borrowers deposit collateral worth more than their loans and pay interest determined algorithmically by each market’s Interest Rate Model (IRM). This model continuously adjusts borrowing and lending rates based on real-time supply and demand for liquidity, ensuring markets remain solvent and efficient.
All interest paid by borrowers accrues directly to liquidity providers (Byzantine Prime depositors) through audited smart contracts. Interest compounds automatically and transparently, without trading, leverage, or speculative exposure.
In short: Returns come from lending, not from market bets. Borrowers pay interest for access to liquidity, and Byzantine Prime depositors earn that interest as yield, fully collateralised, programmatically managed, and continuously distributed on-chain.