Fees
Two types of fees will be charged on the Nemo Protocol, both of which will be distributed to NEMO token stakers. Details on the distribution will be coming soon.
PT Swap Fees
Similar to other AMM-based DeFi projects, Nemo will have different fees for different pools. What makes Nemo's fee structure more reasonable is that the fees decrease as the maturity date approaches. Since shorter maturity times mean lower yields, Nemo's fees will also decrease accordingly. The specific fees can be viewed in the Swap section of the app.
YT Swap Fees
In Nemo's AMM, purchasing YT is executed as a flash swap (where the fee is typically multiple times higher than a standard PT swap). For example:
Suppose you use 1 USDC to buy 10 YT sUSDC. The process works as follows:
Borrow 9 USDC from the Nemo Pool.
Combine it with your 1 USDC to mint 10 PT + 10 YT.
Sell the 10 PT back into the pool.
Keep the 10 YT as the output.
Thus, in this example, the swap fee for YT equals the fee incurred when selling the 10 PT back to the pool.
YT yield Fees
Nemo collects 5% of all YT yields as a protocol fee.
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