Reserve Index DTFs/Fees

Fee Distribution

Distribution of fees in the Reserve Index Protocol

Fee Distribution

After platform fees are deducted, the remaining fees are distributed among the fee recipients according to their Admin-defined weights.

Practical Implications for Users

For Governance Stakers

  • Fee distribution to governance token holders follows an exponential distribution model over time to mitigate MEV (Miner Extractable Value) attacks
  • Governance token holders can claim their pro-rata share of fees based on their staked tokens

For Traders and Holders

  • When holding DTF tokens, be aware that the TVL fee continuously accrues, effectively acting as a management fee
  • When minting new DTF tokens, account for the one-time Mint fee in your calculations

For Integrators

  • Implement accurate fee calculations in your interfaces to provide users with precise token valuations
  • Account for the continuous nature of the TVL fee when displaying token values
  • Ensure your integration accounts for both fees when estimating transaction outcomes

Governance Implications

Fee parameters can be adjusted through governance, allowing the protocol to adapt to changing market conditions. This includes:

  • TVL fee rate adjustments
  • Mint fee rate adjustments
  • Fee recipient configurations