Fees
Pendle protocol has 2 revenue sources:
- YT Fees
Pendle collects a 5% fee from all yield accrued (including points) by all YT in existence, and all yields (including all points negotiated) from the SYs of matured unredeemed PTs.
- YT Fees on Points
Fees on points are applied similarly as Pendle treats points as a form of yield. Since points are tracked off-chain, partner protocols deduct the 5% fee when allocating points to user wallets. The deducted points from fees are then re-allocated to the following Pendle-controlled wallets:
Fee wallets for pools launched BEFORE 8th October 2024
| Chain | Fee Wallet Address |
|---|---|
| Ethereum | 0x8270400d528c34e1596EF367eeDEc99080A1b592 |
| Arbitrum | 0xCbcb48e22622a3778b6F14C2f5d258Ba026b05e6 |
| Mantle | 0x5C30d3578A4D07a340650a76B9Ae5dF20D5bdF55 |
| BNB Chain | 0xd77E9062c6DF3F2d1CB5Bf45855fa1E7712A059e |
Fee wallet for pools launched AFTER 8th October 2024
All chains: 0xC328dFcD2C8450e2487a91daa9B75629075b7A43
Once the token rewards are claimable, the fee wallets will claim the rewards which will later be forwarded to vePENDLE holders.
- Swap Fees
Pendle collects a percentage-based swap fee, scaled with maturity, from all PT swaps. Each fee tier will be displayed in the dApp and is decided by the pool deployer (currently only the Pendle team deploys pools on Pendle).
Pendle taxes the yield-receivables of PT when swaps occur. This creates a fair fee for all pools and maturities as it is scaled to a pool’s maturity (less time to maturity -> less yield-receivables -> lower fees in $ terms). Since YT swaps are also routed through the PT AMM, its fees are calculated based on the PT swapped.
- Fee Distribution
Pendle has 2 sources of fees YT fees and Swap fees. 20% of all swap fees are given to LP providers of the pool as yield.
The remaining swap fees and all YT fees are split between vePendle holders and Pendle protocol in the following ratio
- 80% to vePendle
- 10% to Protocol Treasury
- 10% to Protocol Operations