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Fee flow

The protocol's ongoing revenue is borrow interest, paid in RD by every open trove. In normal operation it's split four ways — and three of those four are places you can earn.

Borrow interest from all branches (RD)GlobalFeeRouterStability Poolsdeposit RD to earnKeeper rewardsMEV botsLP stakingprovide liquidityFEE stakingstake FEE
Normal operation: borrow interest (in RD) from every branch is split between the branches' local Stability Pools and the singleton GlobalFeeRouter, which fans out to keeper rewards, LP staking, and FEE staking. Band widths are illustrative; the actual splits are set by PI controllers within a 10%–60% band. Redemption fees are not shown — they stay with the redeemed trove.

Where the fees go​

  1. Stability Pools — the largest share. Interest is folded straight into depositors' RD balances, on top of the collateral gains and FEE emissions depositors already earn. You earn by depositing RD into a branch's pool.
  2. LP staking — a share of the global distribution, paid as RD, on top of the FEE emissions LPs earn. You earn by providing liquidity to the canonical Balancer pool and staking the BPT.
  3. FEE staking — the remainder of the global distribution, paid to FEE stakers as RD. You earn by staking FEE (longer lockup tiers take a bigger share).
  4. Keeper rewards — a small top-up that funds protocol upkeep. This one is a MEV-centric sink: keeper bots earn RD for performing the on-chain operations the protocol needs — running drips and updating the oracle and par. It's competitive and automated rather than a passive deposit; run a bot and you can capture it, otherwise it just keeps the machine turning.

The Stability-Pool / LP / FEE splits are set by PI controllers and drift inside a 10%–60% band; see Fees for the exact routing. Redemption fees are a separate stream not shown above — they stay with the redeemed trove as residual collateral and never reach these destinations (see Redemption).