Fees

EpsiLoan operates with a transparent fee structure designed to ensure fairness, security, and sustainability within the decentralized finance (DeFi) ecosystem. Here's a breakdown of the fees associated with EpsiLoan:

No Direct Fees for Regular Users: Regular users, defined as those who open a loan with a duration of at least 3 days, do not incur any direct fees when using EpsiLoan. There are zero fees for depositing collateral, minting yUSD, or repaying a loan, making EpsiLoan a cost-effective borrowing solution for users.

Protocol Fee on Yield: The protocol charges a percentage fee (subject to approval/changed by the DAO) from the yield generated by the deposited collateral, including staking and restaking rewards. This fee ensures the sustainability and growth of the protocol while incentivizing participation and contribution from users.

Safeguards Against Exploitation: To prevent gaming or exploiting the protocol, EpsiLoan has implemented two types of safeguards:

• An anti-flash loans fee, set at 5% (subject to change), to protect against possible oracle failures or short-term price discrepancies.

• A 0.1% fee on withdrawals made within three days of deposit, aimed at discouraging short-term deposits and withdrawals designed to exploit interest from collateral rebasing.

Redistribution of Fees to ELN Stakers: Embracing the principles of decentralization and community, all fees generated by the protocol are redistributed to ELN (EpsiLoan Token) stakers. This ensures that users and supporters of EpsiLoan have a genuine and sustainable yield source, aligning incentives and fostering a vibrant and engaged community.

In summary, EpsiLoan's fee structure prioritizes transparency, fairness, and community benefits. By charging protocol fees on yield and implementing safeguards against exploitation, EpsiLoan ensures the integrity and sustainability of the platform while rewarding ELN stakers for their participation and support. With zero direct fees for regular users and a commitment to community-driven governance, EpsiLoan Protocol stands as a beacon of innovation and inclusivity in the DeFi landscape.