Lenders deposit single token into Lend Flare which will then be staked in Compound. In case if no borrow occurs, lenders could still earn full interest from Compound. When borrow occurs, lenders will be able to have a base supply interest higher than Compound's, Comp token and LFT rewards.
By providing liquidity to Lend Flare's loan liquidity pool. Lenders will share 100% interest in the current pool before IDO. After that, lenders will have 50% of current pool loan interest , LFT rewards and Comp token. For example, lenders can earn interest on Dai by providing liquidity in Dai pool
When users stake LFT, they not only get VeLFT, but also 50% of the loan interest from all pools in Lend Flare. VeLFT has many features that allow you to vote and to boost LFT rewards.
Lend Flare interest consist of three part: Compound interest, Lend Flare interest, LFT.
Liquidity provider will also get Comp token. However, Comp token will not be included in interest calculation.
When the liquidity provider withdraws their liquidity, Lend Flare returns the ctoken, interests have to be withdrawn separately. After the withdrawal of the liquidity, users no longer enjoy the benefits of the platform.