DCNTRL Network Docs
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  • πŸ‘‹Welcome to DCNTRL - The future of Stablecoins
    • Introduction to DCNTRL Protocol
  • DCNTRL Features
    • πŸ’²USDEFI Stablecoin
      • πŸ’°Minting / Redeeming USDEFI
      • πŸ“ˆMaintaining the $USD Peg
      • πŸ’ΈEarning in USDEFI Stability Pool
    • πŸ’ŽDCNX Tokens
      • 🎁Earning DCNX
      • πŸ“ŠDCNX Tokenomics
      • 🏦Earn Protocol Revenue
      • πŸ’³How to Buy DCNX
    • πŸ›‘οΈEcosystem Stability
      • 🌊Liquidations
      • 🌑️Recovery Mode
  • User Guides
    • ⚑Getting Started with DCNTRL Protocol
      • 1️⃣Connecting Your Wallet
      • 2️⃣Getting BNB
    • 3️⃣Your Dashboard
    • 4️⃣Borrowing (Minting) USDEFI
      • βš™οΈManaging your USDEFI Position
    • 5️⃣Start Earning with USDEFI
      • How to Stake USDEFI
      • How to Unstake From Stability Pool
    • 6️⃣Redeem USDEFI - Get BNB
    • 7️⃣Liquidating Bad Debt
      • β†ͺ️How to Manually Liquidate Bad Debt
    • πŸ†How to stake DCNX to earn Protocol Revenue
  • Useful Docs
    • πŸ“ƒSmart Contract Audits
    • πŸ“ˆDCNTRL Protocol Fees
    • Terms of Service
      • πŸ”’Privacy Policy
      • πŸͺCookie Policy
    • 🎨Brand Assets
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  • Does DCNTRL Protocol impose any fees?
  • Where does the Revenue Go?
  1. Useful Docs

DCNTRL Protocol Fees

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Last updated 1 year ago

Does DCNTRL Protocol impose any fees?

There's a one-time fee when USDEFI is borrowed and when USDEFI is redeemed:

  1. For borrowers, a loan origination fee is applied as a percentage of the amount drawn (in USDEFI).

  2. For redeemers, a redemption fee is charged on the amount paid to users by the system (in BNB) when exchanging USDEFI for BNB. It's important to note that redemption is different from repaying your loan as a borrower, which is free of cost.

Both fees are contingent on redemption volumes. They rise with each redemption based on the redeemed amount and decrease over time if no redemptions are made. This system is designed to moderate large redemptions with higher fees and control borrowing right after significant redemption volumes. The declining fee over time ensures that the charges for both borrowers and redeemers will "cool down" during periods of low redemption volumes.

The fees cannot drop below 0.5% (except in Crisis Mode), preventing the redemption facility from being exploited by arbitrageurs who could potentially front-run the price feed. The borrowing fee is capped at 5%, keeping the system appealing for borrowers even in stages where the money supply contracts due to redemptions.

Where does the Revenue Go?

Revenue is shared with DCNX stakers! To learn more about our revenue sharing model by

πŸ“ˆ
checking it out here!