Fees (TBD)

A concise summary of the ONEZ’s fee structure and interest rate calculation

Minting Fees

  • Charged when borrowing ONEZ against collateral.

  • The fee is variable, algorithmically determined, ranging between 0.5% and 5%.

  • A 200 ONEZ Liquidation Reserve is charged but returned upon debt repayment.

  • Example: Borrowing 4,000 ONEZ incurs a 20.00 ONEZ fee, resulting in a total debt of 4,220 ONEZ after adding the Liquidation Reserve.

Redemption Fees

  • Charged when exchanging ONEZ for collateral at face value.

  • Intended to protect system solvency during low collateral ratios by disincentivizing redemptions.

Interest Calculation

  • Interest accrues through specific protocol interactions, affecting all borrowers.

  • Compounded per interaction, not per second, leading to potential underestimation of accrued interest.

  • The Interest Rate Index updates with each transaction, compounding interest based on a per-second rate.

  • Each vault's debt is adjusted according to the latest Interest Rate Index and active interest accrued.


  • Simple interest calculation over seconds since the last update may underestimate actual compounded interest.

  • The accuracy of accrued interest depends on the frequency of transactions within the ZeroLend protocol.

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