πŸ’ΈFees

Detailed information regarding fees collected by the protocol

During the creation of a pod, the creator can customize the pod's fees. These adjustments will alter how the specific pod manages fees and distributes rewards. There are five (5) key Pod Fees at pod inception, these are:

  1. Wrap Fee %

  2. Unwrap Fee %

  3. Add Partner Fee Share?

    • Partner Fee Share % (max 5%)

    • Fee Share Address

  4. pTKN Burn % (max 50%)

  5. Add AMM Fees

    • AMM Buy Fee %

    • AMM Sell Fee %

Generally speaking, higher pod fees mean a higher amount of tokens burned and rewards distributed per arbitrage, however, this can also lower the volume of arbitrage opportunities as the difference in asset prices will need to be higher in order for the arbitrageur to accommodate the higher pod fees and make a profit from the arbitrage.

Inversely, lower pod fees means a lower amount amount of tokens burned and rewards distributed per arbitrage, however, this can also raise the volume of arbitrage opportunities as the difference in asset prices can be smaller for the arbitrageur to take advantage.

It is recommended that due diligence is performed on the asset(s) being used to create the pod and select fees based on the volatility of the underlying asset(s).

Fee Options Explained

  • By default, a pod will not show to the general public in the UI with Partner Fee Share enabled until it meets a minimum threshold TVL proportional to the fee share.

  • The combined value of Partner Fee Share % plus pTKN burn % cannot exceed 50%.

  • Partner Fee Share % can be reduced or disabled after a pod has been created. The Fee Share % can never be increased, and all other fees cannot be adjusted once a pod has been created.

Detailed information about each pod fee option are as follows:

FeeDescription

Wrap Fee

The % of pod tokens (pTKN) collected as fees for wrapping assets to the pod.

Unwrap Fee

The % of pod tokens (pTKN) collected as fees for unwrapping assets from the pod.

Burn Fee

The % of total fees allocated to the burning of the pod token (pTKN), with a maximum of 45%.

AMM Buy/Sell Fee

The % of fees applied to the buys & sells of the pod token (pTKN) done directly via Uniswap.

Partner Fee

A % of total fees (up to 5%) that are distributed as pod tokens (pTKN) to a specified wallet allocated by the creator of the pod.

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