Extract from an article on Kobo Writing Life site:

Did you know that you can distribute your eBooks to OverDrive with one click, right in your Kobo Writing Life dashboard? Reaching millions of library readers—and receiving the best royalty rate you’ll find anywhere—is as easy as opting your eBooks in and setting a Library price.

OverDrive is Kobo’s sister company, meaning we are working together to offer you the exact royalty rate (50% of your library list price) you would get if you had a direct OverDrive account, but without the added hassle of managing two separate accounts, AND without any additional aggregator royalty cut.

So what do you need to know?