xDETF

Our Protocol Fee Distribution Mechanism

Protocol Fee

xDETF is the main driver of utility to DETF, the native token to DeFund. To receive xDETF, DETF is staked into the xDETF module, which burns DETF and mints xDETF. This newly minted xDETF represents your portion of the protocol fee distribution. 100% of all protocol fees are distributed to xDETF holders/stakers.

At genesis, DeFund takes a 0.30% annual goal protocol fee on all dETFs, on a per-block basis. This is called a goal protocol fee because it is taken based on the projected annual block amount, which may vary slightly over time.

Builder Fees

Builders and dETF creators may add on any extra goal annual AUM fee on top of the protocol fee up to 100% of the total AUM.

Roadmap

We are in the process of adding an optional performance fee for builders and creators of dETFs to charge with or without an AUM fee. We also plan on adding various other incentivization mechanisms for builders and creators at the request of our community and in the order of interest from the community.

Note: Any creator or builder can contribute to the DeFund protocol. If they would like to have a particular incentivization option supported by DeFund sooner than what the core development DAO/team can do, then they are more than welcome to spearhead this. See the DAO section for more on how to contribute!