Fees Generation

The Parallel Protocol is generating revenues by taking fees on minted PAR/paUSD. These fees are called "Origination Fee" and "Borrowing Fee".

Origination Fee

The "Origination Fee" is a fee taken at the moment of the mint of newly PAR/paUSD tokens. The "Origination Fee" is quoted as a percentage of the total newly minted PAR/paUSD.

Origination Fee parameters for each token are available here.

Borrowing Fee

The "Borrowing Fee" is a fee taken on the amount of PAR/paUSD minted by against a collateral. The "Borrowing Fee" is automatically added to the borrower's debt at each block.

Borrowing Fee parameters for each token are available here.