# ILP Rewards ### Strategies Rewards in the ILP grow exponentially proportional to the amount of LODA invested into the pool. In the ILP there are two types of reward strategies: #### Initial Rewards Strategy (IRS) The IRS strategy provide rewards per LODA invested in the ILP, without a daily limit. This is done to encourage early Loda staking where the pool is not actually insuring anything. #### Maturity Rewards Strategy (MRS) The MRS stategy will unlike the IRS have an upper limit of rewards. These rewards will be distributed between the ILP and SLP based on the current pool and healthy pool ratio. ![](https://2649011562-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCHQBODTYUzbZzWIIvS4p%2Fuploads%2FTxTKx5w6Lz4kfHk3v19A%2Fimage.png?alt=media\&token=ddb011fd-9e93-4c19-b9c3-c8b273780059) #### USDC to LODA and vice versa Conversion **LODA to USDC** conversion will happen in case of defaults. USDC can be borrowed from the treasury by pledging LODA tokens, so they never enter the open market or be bought from the open market directly by selling LODA. In case of pledging, then the ILP contract is responsible for buying back all the pledged tokens at the pledged at price. **USDC to LODA** conversion when collecting ILP fees as USDC and adding it to the ILP as LODA tokens. --- # 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.lodacicero.finance/ilp-rewards.md?ask= ``` 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.