# FAQ

### Where does Strobe Money Market yield come from?

The yield on Strobe comes from users borrowing. Borrowers pay interest to borrow funds from suppliers. Then, the majority of the borrowing interest paid by borrowers will be forwarded to the suppliers as interest. [A part of the borrowing interest will be taken by the protocol as revenue](/strobe-protocol/money-market/asset-parameters/definitions.md#reserve-factor).

### Does Strobe Protocol have a plan to support any more assets such as RLUSD?

The Strobe Protocol team is exploring the possibility of supporting additional assets. However, the decision to expand asset support will be contingent on various factors such as market demand, community feedback, and security considerations. As the ecosystem evolves, we will continuously evaluate which assets align with the protocol's goals and priorities. Any developments in this area will be communicated transparently.

### Is something like a deposit certificate token available on Strobe Protocol?

A deposit certificate token refers to a token that represents user's deposit position. For example, [Aave has aToken](https://aave.com/docs/developers/smart-contracts/tokenization), and [Compound cToken](https://docs.compound.finance/v2/ctokens/).

Strobe Protocol does not and cannot issue a deposit certificate token due to its nature of being a cross-chain application using Axelar. A deposit certificate token is like any other tokens, except that it is yield-bearing, meaning its balance needs to increase dynamically as time goes by. However, since a deposit certificate token needs to be minted back on XPRL, there is no way to dynamically show the increasing balance of the existing deposit that reflects the interests earned.

Also, a deposit certificate token is fully transferrable to other accounts as long as the user's debt position is still overcollatearlized. If a transfer happens on EVM Sidechain, there is a way to stop it by inserting custom collateralization checks in the token contract. But since the token needs to be issued back on XRPL, Strobe Protocol cannot check each transfer on XRPL against the user's status of collateralization on EVM Sidechain.

With that being said, Strobe Protocol keeps the accounting of each user's deposit and debt as variables inside its contract, which can be looked up on by anyone on blockchain once the ABI is published. 

### Is Strobe Protocol's implementation dependent on [XLS-66d](https://github.com/XRPLF/XRPL-Standards/discussions/190)?

XLS-66d is an XRPL-native Lending Protocol specification. Everything related to lending and borrowing take place on XRPL. All logics reside inside XRPL. It is not relevant to EVM Sidechain at all.

Strobe Protocol currently does not implement anything related to XLS-66d. Strobe Protocol builds its own money market on EVM Sidechain. We have left doors open for XLS-66d, while we are not working on it now.

### Then, what is the difference between [XLS-66d](https://github.com/XRPLF/XRPL-Standards/discussions/190) and Strobe Protocol?

[XLS-66d](https://github.com/XRPLF/XRPL-Standards/discussions/190) is an *uncollateralized* lending protocol, which means all users don't need to provide any collaterals in order to borrow, but instead need to go through some form of KYC in order to lend or borrow funds. 

On the other hand, Strobe Protocol is an overcollateralized lending protocol. Users must provide collaterals in order to borrow. Here's a brief rundown on the difference:

| Difference              | XLS-66d | Strobe Protocol |
| ----------------------- | ------- | --------------- |
| Overcollateralized      | No      | Yes             |
| Needs KYC               | Yes     | No              |
| Leverages EVM Sidechain | No      | Yes             |

### How is the protocol governed or how will it be governed?

At the beginning of the protocol, the team will play a main role in determining the direction of the protocol, while actively notifying users of any updates in the direction.

However, once the protocol has a DAO and its token launched, it will depend on community proposals.

The governance includes several topics. One example would be adjusting asset parameters.


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