Fees are important to maintain a healthy protocol, build up an insurance fund and support further development. PsyLend charges two kinds of fees:
Loan Origination Fee: PsyLend charges an initial 0.1% fee on all funds borrowed. These funds are sent to PSY DAO treasury to fund protocol development.
Interest Rate Spread Fee: PsyLend charges 10% fee on all interest rates paid by borrowers. Half of this fee goes to the protocol insurance fund to protect depositors in case of tail events. The other half goes to the PSY DAO treasury.
Fees are subjected to changes. Additionally, users will have to fund Solana Rent Fees when first opening new accounts on PsyLend. This rent is returned to the user after they close their account.