Protocol Fees
The protocol generates fees in the following ways:
- LP fees - token is deployed into a 1% Uniswap V3 pool, which means swaps pay 1% when swapping in/out of the pool. This fee goes directly to increasing the BLV. You can learn more about Uniswap fee tiers here (opens in a new tab).
- Liquidity rebalancing fees - the protocol rebalances reserves from discovery into floor and anchor when
shift()
is called. These reserves go toward increasing the BLV. - Borrow fees - users pay a one-time per-diem fee when they open or extend a borrow position. This fee goes directly to increasing the BLV.
Team fees
During shift()
rebalancing, the protocol directs 10% of surplus capacity (in bAsset terms) to team multisig.