# How are the rewards earned?

### If using a Fluid Asset can allow a person to potentially earn yield, where does this yield come from?

{% hint style="info" %}
Fluidity borrows from the yield generation concept to create a 'no-loss' rewards savings pool.
{% endhint %}

As mentioned earlier, to mint a Fluid Asset a principal token is required to be locked up. When you mint 1 ƒUSDC you have to deposit 1 USDC token in exchange.

Fluidity earns yield on the deposited USDC token and distributes it to the reward pool, which is only accessible to people who utilise the respective Fluid asset.

The yield is generated from lending the principal asset into Decentralised Finance protocols such as *Compound* or *Solend*, or utilise in yield generating strategies. When a Fluid Asset is swapped back for the principal, the contract withdraws the tokens from the Defi Protocol.

This way Fluidity does not charge any fees to utilise Fluid assets, and rewards can be sizeable.

In the next section, we explore how these rewards are sized, the expected payouts, probabilities and how Fluidity protects itself.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.fluidity.money/docs/learning-and-getting-started/how-are-the-rewards-earned.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.