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Forge Fees

For every interest payment to any user's account, the protocol will take a fees:

fees=interest calculated for userfeesFactor\text{fees} = \text{interest calculated for user} \cdot feesFactor


0feesFactor<10 \leq feesFactor < 1

The total fees accrued for the protocol will be kept in a variable totalFee, for each of the underlying asset in a Forge. i.e. in a mapping mapping(address => uint256) totalFee

  • Let's assume that m(t1, t2) is how much an amount of yield tokens will grow, from t1 to t2 .
    • For Aave: m(t1,t2)=NormalizedIncome at t2NormalizedIncome at t1m(t1, t2) = \cfrac{\text{NormalizedIncome at t2}}{\text{NormalizedIncome at t1}}
    • For Compound: m(t1,t2)=1m(t1, t2) = 1

This means that if totalFee was last updated in t1 and there is an additional amount of totalFee at t2:

totalFee=totalFeem(t1,t2)+additionalFeestotalFee = totalFee \cdot m(t1,t2) + \text{additionalFees}

The governance address could ping the forge at anytime, with a list of underlying asset addresses, to withdraw the totalFee to the treasury address.