Protocol Fees
Fees lay the foundations for a healthy and prosperous ecosystem. They are a fundamental revenue source for the protocol.
Every time a trade takes place on the protocol, a swap fee is denominated in the pool's respective BPT. Each pool has its own swap fee uniquely set based on the underlying assets and AMM logic being used. A portion of these fees flow to liquidity providers and the other portion flows to Beethoven X. The specific percentage that flows to the protocol is different for Fantom and Optimism.
On any IB token deposited into a Liquidity Pool on the DEX, Beethoven X takes a fee on the yield generated. This innovative protocol fee ensures a sustainable source of protocol revenue that is purely a function of TVL; no longer is the protocol dependent on swap volume to ensure longevity.
This is unique to Beethoven X and Balancer, no other DEXs have the flexibility to utilize this mechanism.
A small Protocol Fee is taken on Flash Loans.
On both Fantom and Optimism, the percentage of the total fee that flows to the protocol is taken in different proportions. You can see the breakdown of fees below:
Fee Type | Protocol Fee on Fantom | Protocol Fee on Optimism |
---|---|---|
Swap Fee | 25% | 50% (Half goes to Balancer) |
Interest Bearing Fee | 50% | 50% (Half goes to Balancer) |
Flash Loan | 0.03% | 0% |
Protocol fees are distributed on a monthly basis and are allocated differently on each chain according to the following distribution model:
Distribution | Allocation |
---|---|
Treasury | 70% |
Gauge vote bounty for fBEETS holders | 30% |
Distribution | Allocation |
---|---|
Balancer | 50% |
OP Grant matching | 25% |
Gauge vote bounty for fBEETS holders | 7.5% |
Treasury veBAL | 5.835% |
vlAURA | 5.835% |
auraBAL | 5.835% |
In the future, protocol fees as well as distribution will be defined through governance votes.
- Increase protocol swap fee percentage to 25% - 0xa39303f24dcf72795e98414a99830484644ccb6c4e570999db758ac7d734b987
- Set protocol swap fee percentage to 15% - 0x2cae7dbc0ef64f4660a8befa5274177b08b66122bfc99f157904ef0c60e87cb3
- Set protocol flash loan fee percentage to 0.03% - 0x63856e70c2f52e91cc8ecb3838298d0b8a2e0dc20f11e737fca066d6f550125c
Last modified 1mo ago