Honey P2P has 2 protocol fees: 10% of what lenders receive (lending fee) + 1.5% of debt (borrower fee).
Example of loan on Honey P2P Maia (lender) and Barry (borrower) enter a loan agreement on Honey P2P: Barry requests to borrow 500 USDC for his Honey Genesis Bee NFT for 10 days. He is willing to pay lenders up to 8% interest to fund this loan. Maia accepts Barry's loan request and funds the loan for 500 USDC. 10 days later, Barry pays his loan back: 500 USDC + 40 USDC (the 8% interest)
The protocol collects a 1.5% fee on the debt taken out by borrowers.
Borrower fees ensures that the protocol receives fees regardless of liquidations and default rates.
When Barry takes out a loan for 500 USDC, he receives 492.5 USDC of debt and the protocol receives 7.5 USDC.
The protocol collects 10% of the interest accrued to lenders.
When Barry pays back 40 USDC of interest, Maia receives 36 USDC and 4 USDC goes to the protocol.