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Protocol Fees

Liquidation Fee
If an N-Position is liquidated, a portion of collateral goes to a third-party liquidator who liquidated the position, and some percentage goes to the protocol.
Current liquidation fee going to the liquidator: TBA
Current liquidation fee going to the protocol: TBA
These figures can be voted on in the DAO
Exit Fee: 5%
Deducted upon withdrawal of funds from Nilla vaults. A portion of this fee will be distributed to the suppliers of NillaConnect. 
The current portion shared to the suppliers is TBA
APY Spread Fee
The protocol takes spread as a fee between the APY which liquidity providers recieve and the fee & farmers pay for borrowing their assets. The exact value of this fee is calculated as following:
Borrowers pay borrow APY to liquidity providers and pay spread fee to DAO spreadFee. That means effective borrow rate for borrowers is calculated as r(u)∗(1+spreadFee)r(u)*(1+spreadFee)r(u)∗(1+spreadFee)
, while the DAO receives r(u)∗spreadFeer(u)*spreadFeer(u)∗spreadFee
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Last modified 7mo ago