Fees and Interest Rates

Minting Fee

The minting fee is a one-time fee added to the users debt when the user borrows ebUSD. The minting fee is a minimum of 0.5% and maximum of 5%, but varies and is calculated via a base rate and amount of ebUSD borrowed.

Note 200 ebUSD is also charged for the liquidation reserve, but returned to the user once the debt is paid back.

Redemption Fee

A redemption fee is paid when the user wants to redeem ebUSD for collateral.

Borrow Interest Rate

Users can adjust their interest rate any time throughout the lifecycle of the loan.

User-set interest rates enables Ebisu’s rates on loans to be dynamic based on macro market conditions vs. being set algorithmically or by governance. This creates an efficient, market-driven equilibrium between borrowers and stablecoin holders strengthening ebUSDs peg.

The borrow interest rate accrues on a users outstanding debt over time.