🏦Fees
Levvy for Tokens has implemented a fee structure that ensures a balanced allocation of fees between lenders and borrowers. Unlike many other lending protocols, the fee is split evenly between lenders and borrowers.
The fee is set at 12.5% of the interest rate for each side, meaning that in total a 25% fee of the interest rate is collected in total. For borrowers, this fee is enforced upon accepting the loan and for lenders when they claim their ADA (plus interest) back or when they foreclose. Example: Loan
Note that Lenders and Borrowers will also be subject to MinUTXO fees (approx. 4-6 ADA)
With the introduction of FTs loans in Levvy v2, we also introduced a fee distribution mechanism to $SOC staking. You can learn more about it here.
Fees generated from loans on the fungible tokens side of Levvy are split 50/50 between the $SOC staked in the platform and the team.
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