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Fees

Explanation of fees in Honey's peer-to-contract protocol

Protocol fees

Honey charges a 10% commission on interest rates which go to the Honey DAO multisig wallet.
If borrower's pay 100$ worth of interest to lenders, lenders will receive 90$, with the remaining 10$ going to the DAO.

Admin fees

Lending pool creators can institute a fee in their lending pools. These admin fees also work as a commission on interest rates, and can range anywhere from 0% to 50% of the accrued interest in a lending pool.
Admin fees are deducted from the total interest paid at the same time as protocol fees.
In a lending pool with a 5% admin fee, if borrower's pay 100$ worth of interest to lenders: - lenders will receive 85$ - Honey DAO will receive 10$ - Pool admin will receive 5$

Borrow fees

These fees are a commission on the debt issued by the protocol. Honey takes 1.5% of the debt upon borrowing on Solana.
Borrow fees on Honey's EVM beta (Polygon, Arbitrum, etc.) are currently set at 2%.
If a borrower withdraws 100$ worth of debt, their debt will be 101.5$. The additional 1.5$ is protocol revenue which can be claimed by the DAO from the lending pool.

Revenue

Currently, the Honey Development Association and Honey Labs are eligible to claim these fees to fund development of the protocol.