Fees

Borrowing

There are three types of fees paid by borrowers to lenders in the Stacking Salmon Protocol. There is a fixed, one-time borrow fee of 0.2% whenever a borrower takes out a new loan. There is also the interest on borrowed tokens that accrues over time, according to the interest rate model.

A portion of the fees (currently 50%) paid by borrowers to lenders is reserved by the Stacking Salmon Protocol. The strategy for reserve management will be at the discretion of governance.

These fees are allocated to the protocol reserves in their native token form:

• 0.2% borrow fee

• 0.2% deposit fee

• 0.2% withdrawal fee

Lending (Single-Sided)

There are three types of fees paid by lenders in the Stacking Salmon Protocol for supplying tokens to an individual lending pool.

• 0.2% lending fee

• 0.2% deposit fee

• 0.2% withdrawal fee

Liquidations

Borrowers pay a liquidation incentive (currently 2%, and ranging from 1% to 5%) on their borrowed amount to liquidators if their borrow positions get liquidated.

These fees are allocated to the liquidator as collateral tokens:

• 2% liquidation incentive