Lender and borrowers earn VALAS rewards. Check out current APRs on https://valasfinance.com/markets.
Similar to the Ellipsis protocol, rewards are vested for three months. You can immediately receive your rewards by taking an exit penalty if you do not wish to wait.
The penalty you pay is initially 75% of the vested amount, decaying lineary to 25% during the three month vesting period.
During vesting, you can receive protocol fees, the same way you would if you staked VALAS.