Fees allocation

The platform's fee redistribution system is a crucial element in understanding how Excalibur works.
It allows us to reward all the different players in the ecosystem in a fairer and more efficient way, by incentivizing long-term staking in particular, while offering the widest possible range of strategies according to market profiles and needs.
In order to allow this to happen, the distribution and use of deposit fees (on the yield farming side) and swap fees (on the AMM side) has been completely rethought and reworked. At the heart of this new system is the FeeManager contract (FM), through which almost all of these funds pass, and which redistributes them to the various players and treasuries of Excalibur protocol.

Platform fees

All deposit fees are paid directly to the Excalibur FeeManager contract.
Swap fees are split between the LPs and the FM. This distribution can be modified, but in order to give guarantees to the users bringing us liquidity, it is impossible for us to allocate less than 50% of those fees to the LPs.
A portion of the swap fees from certain transactions may also be paid to approved partners under certain conditions, as explained here.


Below are the different destinations and their allocations of the FeeManager funds:

Dividends (50%)

Will always be the largest allocation (minimum of 50%), will be distributed to users holding our shareholding token GRAIL.

Project-owned liquidity & treasury (25%)

One of the two sources feeding the DAO treasury, the second being our bonding system.

Team (20%)

Used for operating costs (structure, hosting, services...) and the team salaries.

SAFU funds (5%)

Reserved for incidents, bug bounties and as a guarantee fund for beta testing of new features. Like the DAO treasury, its use will be controlled through governance.