Curvance
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Platform Fees
To further strengthen the growth of the Curvance treasury and incentivize vote locking, a platform fee will be taken from deposited assets interest rates. This fee will vary per pool.
An example of how this would look is that a user deposits cvxCRV as a collateral asset, which will automatically be directed back to Convex Finance to earn interest (~60% APR). The platform fee deducts from the ~60% APR cvxCRV production - meaning the user's interest rate on Curvance would be the native rate minus the platform fee of ~4% in this example, making their total APR ~56%.
This platform fee will redistribute back to veCVE holders in proportion to the amount they hold versus the amount of veCVE in existence. If 100 veCVE is all that exists and a user owns one veCVE, they would earn 1% of the total platform fees distributed.
In the early stages of Curvance's development, a 0.3% tax will be implemented on the platform fee to strengthen the treasury and expand the team. The tax will ensure continued growth and sustainability regardless of market conditions and will allow us to avoid costly VC raises in the future. The DAO can change this function in the future once a point of stability has been achieved.
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