How Scream works

Scream consists of a decentralized system of lending pools. Users deposit assets they want to lend into a liquidity pool and borrowers draw from the pool when they want to take out a loan. Scream borrowers must first supply assets before they can borrow. Given the high volatility of crypto assets, borrowers must post more collateral than the value of the loan, or commonly referred to as overcollateralization. Interest rates on Scream are driven by market supply and demand. To facilitate this activity, Scream issues scTokens to lenders that reflect accruing interest on the underlying token.

How Scream makes money

Scream currently generates revenue from a reserve factor that allocates a share of borrowers' fees to the protocol treasury. Each supported asset has a reserve factor that determines how much goes into the reserve.

How you make money on Scream

You earn lending fees on Scream by depositing your idle crypto assets to be used by borrowers looking for leverage. Scream also offers additional protocol incentives in its native SCREAM token to bootstrap demand. SCREAM stakers (veSCREAM) also earn protocol fees as 70% of the treausry is used to market buy SCREAM and distribute to veSCREAM holders.