interest on bitUSD held

[tonyk]

bitUSD is not destroyed. Collected field goes into yield pool which interest is drawn from.

After this post, rivaled by only by MY spelling ability, let's shed some light on the issue.

In general bitUSDs collected by the system as fees, go into a 'fund'. From this fund the yield/interest is paid.
Depending on which market engine we are talking about (v1,v2, or upcoming v.3) different fees go into the yield fund.

[PS] And as toast explained, if anything is burned it is not bitAssets (bitUSD), but only BTSX.

[toast]

bitUSD is not destroyed. Collected field goes into yield pool which interest is drawn from.

[bitmarket]

So I am confused.   If bitusd's are destroyed by delegates, then how can the person who pledged 200% capital in btsx to create butUSD's buy all of their bitUSD's back to release their capital?

[oldman]

Can someone please help me understand how holders of bitUSD earn interest?  Is it because bitUSD transactions have fees and those fees are paid in bitUSD and a portion of those fees are burned?  Or is it another way?

Short answer is yes, bitUSD transaction fees are flowed through to bitUSD holders as yield.

[.yoshi]

i would like clarification on this as well pls  :)

[bitmarket]

Can someone please help me understand how holders of bitUSD earn interest?  Is it because bitUSD transactions have fees and those fees are paid in bitUSD and a portion of those fees are burned?  Or is it another way?