> For the complete documentation index, see [llms.txt](https://docs.ladt.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ladt.co/economic-model/web3-economic-circle.md).
# Web3 Economic Circle
The Web3 economic circle of LADT is based on an Ethereum Virtual Machine (EVM) compatible protocol that enables the supplying of crypto assets as collateral in order to borrow the base asset. Accounts can also earn interest by supplying the base asset to the protocol. In the following text, we refer to the lending protocol operating platform as “Mek Finance”.
As mentioned earlier, a portion of the ASEAN USD minted will be introduced into the NewPay ecosystem. The other portion will be allocated to Mek Finance. Meanwhile, the profits generated by the Mek Finance will offer attractive yields to the high-value users.
Retail clients have the option to use BTC, ETH, and select cryptocurrencies specified by Mek Finance as collateral in exchange for ASEAN USD. These assets can then be staked alongside MEK in a combination to earn yields denominated in MEK. It’s important to note that using collateralized assets can activate users’ borrowing capacity but may be partially liquidated if their balance becomes insolvent.
Mek Finance provides attractive yields to encourage individuals to stake ASEAN USD. The initial staking requires the purchase of MEK, after which participants can begin staking with a 30% MEK and 70% ASEAN USD ratio.
Stakers have the option to receive their full earnings upon maturity (vesting periods: 90 days) or choose early withdrawal with a partial loss of earnings.
Simultaneously, a portion of the transaction fees produced by NewPay, along with the RWA profits generated by the reserve, will be directed towards the treasury. At the same time, the treasury will engage in MEK buybacks to create deflation, thereby increasing the token’s value.
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