πŸ’°Revenue Structure

  1. Borrowing Fee

    • One-time minting fee: 0.5%.

    • Fixed annual interest fee: 4.5%.

    • For more details information, please refer to the Borrowing.

  2. Redemption Fee

    • A fee is also charged for redeeming SAT for collateral. This fee helps manage the supply of SAT and ensures the protocol benefits from these transactions. The calculation of Redemption Fee is as same as minting fee.

  3. Flash Loan Fee

    • The protocol offers short-term loans without collateral, known as flash loans, for a small fee of 0.09%. This service is crucial for quick trades and adds to the protocol's revenue.

  4. Liquidation Fee

    • During liquidations, a fee of 0.5% of the collateral is collected. This fee is split 50%/50% between the protocol and the person who initiates the liquidation, incentivizing the maintenance of a healthy collateral level.

All revenues are aggregated into a single pool, which is then distributed entirely (100%) among OSHI stakers based on their sOSHI holdings.

This streamlined approach ensures the financial health of the Satoshi Protocol, providing substantial benefits to both users and the protocol itself. By aligning the interests of stakers and the protocol, this method fosters a sustainable and mutually beneficial ecosystem.

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