Fee Model

A Protocol Reserve will be built over time by applying two types of fees:

  • A Borrowing Fee, FBorrowF^{Borrow}, of 0.1%, applied when a new loan is contracted as a fixed percentage of the Loan Amount

  • An Interest Fee, FInterestF^{Interest}, of 10%, applied on the total interest collected from Borrowers

We will soon publish our Tokenomics Principles that will describe in detail how this reserve will be used.

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