Deposit fee
This page explains the one time deposit fee in more detail.
最后更新于
This page explains the one time deposit fee in more detail.
最后更新于
When depositing collateral on Palm Finance, there is a one-time deposit fee which is floating with the backing percent of that collateral.
Deposit fee is in place to limit the amount of risky collateral to be added based on the risk and de-incentivize too much risky collaterals from backing PUST.
This is a market driven approach similar to Abracadabra's strategy of having hard caps on risky collateral types. When a risky collateral exceeds 1% in the entire system, this fee will increase sharply, thereby slowing down the addition of more risky assets and naturally maintaining the diversity of assets in the entire system.
These are some examples of different collaterals and their associated fees based on risk.
It describes how the variable deposit fee will scale with backing percent. These fee parameters were established in collaboration with our economic auditors.
USDC
Yield bearing stablecoin
Low fee throughout slowly scaling from 0.25-1%
WETH
Medium-low risk asset
Low fee for first 50%, scaling up from there to higher percentages
JOE
Medium risk asset
Low fee up to 5% backing, scaling up to significant fee amounts
DANGER
High risk asset
Low fee up to 0.5% backing, scaling up quickly to significant fee amounts
An example of some fee options for a medium risk asset:
Deposit Fees=Risk-Adjusted Value of Collateral* fee %, and the deposit fee is added into the Asset Portfolio's PUST debt.
At launch, the deposit fee will be static and not dependent on backing percent. This is to allow users to deposit more collateral into system to reach enough liquidity. Once the system obtains a wide variety of different collateral types and volume, the variable deposit fees will be enabled.
Initial deposit fees at launch:.
qiUSDC
0.2O%
103%
WBTC.e
0.25%
110%
WETH.e
0.25%
110%
USDC
0.20%
103%
qiETH
0.25%
110%
qiBTC
0.25%
110%
WETH.e-USDC
0.5%
115%
