# Rewards on Stablecoins

> Earn variable rewards on eligible stablecoin balances directly through Fiber.

There is no need to use a separate DeFi platform, manage another wallet,
manually deposit or remove funds from a strategy, or pay gas fees for each step.
Fiber handles the underlying routing and onchain actions, while your rewards
update directly in your balance.

Rewards are optional, variable, and generated through supported third-party
strategies.

## How Rewards Work

When rewards are enabled, eligible stablecoins may be deposited into a Morpho
vault with exposure limited to lending markets backed by BTC and ETH collateral.

The resulting vault shares are then shielded back into your private `0zk` wallet
address.

Fiber manages the process through its interface, including:

- Routing eligible stablecoins to the underlying strategy
- Completing the required onchain actions
- Maintaining the private path
- Displaying your balance and accumulated rewards
- Removing funds from the strategy when rewards are disabled

You do not need to interact directly with Morpho or manage the underlying
transactions yourself.

## Where Rewards Come From

Rewards are generated through the lending markets used by the underlying Morpho
vault.

Borrowers pay interest to access available liquidity. A portion of that
interest is reflected in the rewards earned by eligible balances participating
in the strategy.

Fiber provides access to the strategy and handles the routing and user
experience. Fiber does not independently generate or guarantee the rewards.

## Reward Rates

Reward rates are variable and may increase or decrease over time.

The rate displayed in Fiber may change based on:

- Borrowing demand
- Available liquidity
- Market conditions
- Performance of the underlying strategy
- Protocol, third-party, or Fiber costs

Past reward rates do not guarantee future rewards.

## Private Rewards

The underlying vault and lending activity operate on a public blockchain, but
your complete balance and rewards position do not need to become a public
balance billboard.

The vault shares associated with your position are shielded back into your
private `0zk` wallet address. Fiber’s privacy infrastructure is designed to
prevent your complete rewards position and broader financial history from being
easily connected to the underlying activity.

Privacy protects the visibility of your position. It does not change how
rewards are generated or remove the risks of the underlying strategy.

See [Privacy](/privacy) for more information about private balances and `0zk`
wallet addresses.

## Risks

Earning rewards involves risk.

Relevant risks may include:

- Smart-contract vulnerabilities
- Failure or exploitation of an underlying protocol
- Borrower defaults or bad debt
- Problems involving collateral assets or price oracles
- Liquidity constraints
- Stablecoin depegging
- Strategy underperformance
- Changing or declining reward rates

Limiting the current strategy to BTC- and ETH-backed lending markets helps
define its exposure, but it does not eliminate risk.

## Enabling or Disabling Rewards

Rewards can be enabled or disabled for supported and eligible stablecoin
balances through Fiber.

When rewards are disabled, Fiber removes the applicable funds from the
underlying strategy. Some processing time may be required before the balance
becomes available for another action, depending on network conditions,
liquidity, and the underlying protocol.

Eligible assets, strategy availability, reward rates, and processing times may
change over time.

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Fiber is a financial technology company, not a bank. Banking services are provided by SSB, Member FDIC. Funds deposited at SSB are eligible for FDIC insurance up to $250,000 per depositor, per insured bank, subject to applicable limitations and FDIC rules.