How Maple generates revenue for the protocol ( explained using simple terms )

As users of Maple finance know, maple finance is primarily an over collateralized lender,( a lending protocol that focuses on giving loans lesser in value than the collateral ) so they bill themselves as an onchain asset manager but focusing on the over collateralized lending.

Maple finance charges borrowers an interest rate, which they pay to the protocol, and then of that interest rate, they take a percentage as protocol revenue, and then passes the remaining on to the lenders (the people who are providing capital on the platform).

So overall cash flows is the full borrow interest.

Let's say for example the interest the borrower pays 6.5%, Maple keeps a small slice (their revenue, about 0.65%–1.25%)

The rest of the interest is paid to lenders
The amount Maple takes is subject to market volatilities
🔸When interest rates are high → Maple finance can take a little more
🔸When competition is high → Maple finance takes less so lenders still earn good returns

What Maple does with that money
Maple finance uses its own share of the money(revenue ) to:

1️⃣Grow the platform
2️⃣Improve products
3️⃣Buy back tokens
4️⃣Support long-term sustainability

So in conclusion the Borrow interest is being split between maple lenders and the protocol thus leading to protocol growth.

That’s how Maple generates revenue, plain and simple.