# Overview

The Extrafi XLend Incentives program is designed to reward users who contribute real liquidity and actively participate in our lending markets. By combining emissions from the Extrafi protocol with external grants such as the Optimism grant, we offer targeted rewards to both lenders and borrowers across multiple asset pools.

These incentives serve several key purposes:

* Encourage organic liquidity growth and retention
* Reward early adopters and long-term participants
* Support ecosystem development across the Superchain

#### **🔍 What's Covered**

The current XLend incentives program primarily applies to:

* **Lending Pools**: Supply and borrow on selected XLend markets
* **Vaults**: Strategy-based lending vaults integrated with other protocols like Morpho
* **LP Pools**: Liquidity provision on external platforms such as Balancer

We use different incentive logic depending on the pool type. The most common models include:

* **Net Deposit Rewards**: Incentives based on a user's net position (supply - borrow) in a pool
* **Supply & Borrow Rewards**: Incentives based on supply or borrow activity, distributed proportionally to user's contribution.


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