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Fees

Borrowing

There are two types of fees paid by borrowers to lenders in the Tethys Market Protocol. There is a fixed, one-time borrow fee of 0.1% 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 10%, and ranging from 0 to 20%) paid by borrowers to lenders is reserved by the Tethys Market Protocol.
These fees are allocated to the protocol reserves as bTMARKET tokens:
  • 10% reserve factor
  • No deposit fee
  • No withdrawal fee

Lending (Single-Sided)

There are no fees paid by lenders for supplying tokens to an individual lending pool, and no deposit or withdrawal fees.
  • No fees
  • No deposit fee
  • No withdrawal fee

Auto-Compounding Vaults

The reinvestment process for Tethys Vaults is permissionless, so anyone can invoke it to auto-compound an entire lending pool and receive the reward bounty (1% of the pending rewards).
These fees are allocated to the reinvest bounty as DEX reward tokens:
  • 1% reinvest fee
  • No deposit fee
  • No withdrawal fee

Liquidations

Borrowers pay a liquidation incentive (currently 4%, 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:
  • 4% liquidation incentive
Last modified 9mo ago