Performance fee

Perfomance fee: 20% on the farming yields auto-compounded

When you deposit yield-bearing tokens (i.e LP tokens) as collaterals on Palm platform, your deposited assets continue farming and earning yields, the Palm platform realizes auto-collecting and compounding for you. 20% Perfomance fee will be charged based on the yields earned and auto-compounded.

Palm Finance takes this small cut of rewards but even after that, the leveraged farming strategies will offer yields superior to anything out there today.

Auto-compounding means we sell the faming yield tokens and transfer them into the underlying asset. So for example, when you deposit Trader Joe LP tokens into Pal, Finance, we deposit them into the Trader Joe Master Chef contract to earn JOE yield. We periodically claim the JOE rewards and sell it for more JLP tokens.