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Protocol Fees

The protocol generates fees in the following ways:

  1. 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.
  2. Liquidity rebalancing fees - the protocol rebalances reserves from discovery into floor and anchor when sweep() is called. These reserves go toward increasing the BLV.
  3. 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 sweep() rebalancing, the protocol directs 10% of surplus capacity (in bAsset terms) to team multisig.