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Interest accrual

MakxYieldPad accrues interest continuously on all outstanding bonded ETH using a per-second interest rate: 
pending = elapsed × interestRatePerSecond × totalBondedETH / 1e18
  • elapsed — seconds since the last interest collection.
  • interestRatePerSecond — WAD-denominated rate set by the protocol owner (1e18 = 100% per second; typical values are far smaller).
  • totalBondedETH — total ETH currently lent out across all active launches.
This calculation is purely accounting — it does not require any per-block transactions. The lastInterestTimestamp is updated whenever collectInterest() is called.

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Interest collection

Anyone can call collectInterest() on MakxYieldPad to push accrued interest to the vault: 
yieldPad.collectInterest()
The vault also calls this automatically before every deposit and redemption — ensuring share price is always current before any shares are minted or burned. When interest arrives at the vault:
  • address(vault).balance increases (idle ETH goes up)
  • totalBondedETH stays the same
  • totalAssets = balance + totalBondedETH increases
  • sharePrice = totalAssets / totalSupply increases
  • Every METH holder’s position appreciates

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Interest vs. rental fees

These are the same economic flow, viewed from different sides:
PerspectiveTermRecipient
Token creatorRental paymentProtocol / vault
Vault depositorInterest incomeMETH holders (via share price)
When a creator calls depositRent(launchId), the ETH flows to the protocol. YieldPad accrues that obligation as accruedInterest and pays it into the vault via collectInterest(). The vault’s idle balance grows, raising the share price.

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What drives yield

Yield for METH holders depends on:
  1. Volume of active launches — More tokens launched = more ETH bonded = more interest accruing.
  2. Bond sizes — Larger market cap launches rent more ETH, contributing more to totalBondedETH.
  3. Rental duration — Longer rental periods mean more continuous interest flow.
  4. Interest rate — The interestRatePerSecond set by the protocol owner determines the annual yield rate.

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Bond principal safety

The yield mechanism is built on a mathematically guaranteed principal floor:
  • The vault lends bondAmount to each launch.
  • That ETH goes into a Uniswap V4 full-range LP position.
  • Buyers must deposit ETH to receive tokens; sellers must return tokens to get ETH.
  • The vault’s LP position captures all ETH net flow. On withdrawal, recovery ≥ bondAmount always.
Recovery ≥ bondAmount because:
  Pool ETH = bondAmount + net buyer deposits
  Net buyer deposits ≥ 0
The vault cannot lose bond principal through any trading activity, dev dumps, or token failure. The only systemic risk is smart contract bugs — mitigated by fixed supply (no mint), locked LP NFT (no transfer), and full-range positions (no concentrated range drain).

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Interest rate parameter

interestRatePerSecond is a WAD (1e18 scale). To convert APR to per-second rate: 
interestRatePerSecond = APR_in_bps × 1e18 / 10_000 / 31_536_000
For example, 5% APR: 
0.05 × 1e18 / 31_536_000 ≈ 1,585,489,600
The owner can adjust this rate via configure() without affecting the bond principal guarantee.