Issuance Fee

Borrowing taoUSD from a Vault incurs a one-time issuance fee. This fee is:

  • Charged in taoUSD

  • Applied to the amount borrowed

  • Added to the total debt within the Vault

Dynamic Fee Range

The issuance fee is dynamically set between 0.5% and 5%, based on:

  • Collateral risk characteristics

  • taoUSD supply and demand dynamics

This mechanism ensures protocol stability and helps maintain the taoUSD peg.

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