About Fees

Protocol Fee is charged only on the underlying yields of the stETH that minted LETH

Protocol Fee = LETH amount minted * Yield generated on the underlying * 40%

For example,

Case A: if user deposited 100 stETH and minted 0 LETH, no protocol fee is charged.

Case B: if user deposited 100 stETH and minted 20 LETH, protocol fee is charged only on yields generated from 20 stETH in the vault.

Note: Protocol Fee is charged only on the yields received.

Redemption Fee (%) = Base Fee + Max Adjustment * (1 - Mint Ratio)

Where, Base Fee = 0.5%, Max Adjustment = 1.5%

Note: Redemption Fee is the fee that a redeemer will pay when redeeming from the vault.

For Example:

Assuming stETH APR = 4% for simplicity