# $BREAD Rises There are various actions that users can undertake in the protocol. Each of them has an associated fee. 70% of baking, burning, loan, and leverage fees increase the liquid backing of each circulating `$BREAD`. * Every time someone bakes or burns `$BREAD`, the fee is added to the `$BERA` backing * Every time someone opens a loan, the loan interest fee is added to the `$BERA` backing * Loans are time based, and if someone defaults on a loan, their `$BREAD` is burned * If `$BREAD` is burned - decreasing the supply and reducing the backing - the fees from doing so are added to the backing which still increase the ratio of `$BERA` backing each circulating `$BREAD` * Even when the supply increases, more `$BREAD` cannot come into circulation without fees being added to the backing that further improve the exchange rate of `$BREAD` to `$BERA` * Please note that `$BREAD` is up-only against `$BERA`, not `$USD` {% hint style="info" %} The source of yield is sustainable because it stems from: new participants minting, burning, initiating loans, and defaulting. LP incentives come from protocol revenue, as well as other incentives from Kodiak, Yeet, and Olympus. {% endhint %} --- # 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://documentation.bakerdao.io/documentation/usdbread-rises.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.