🧮Fees

Fair and transparent fee structure!

The protocol generates fees in the following ways:

1. LP Fees: $CHAMP 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. Uniswap V3 fee tiers can be found 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.

The team generates fees in the following way:

1. Liquidity Rebalancing Fees: during the sweep() rebalancing, the protocol directs 10% of surplus capacity (in bAsset terms) to team multisig.