Fee & Burn Mechanics
Two sources of fees flow through the protocol: mint/redeem fees on Blends, and swap fees on Blend pools.
Where fees come from
- Mint fee —
0.30%of each deposit. - Redeem fee —
0.30%of each redemption. - Swap fee — charged on every trade against a Blend's weighted pool, including arbitrage rebalancing.
How each fee splits
- Swap fees:
70%liquidity providers,20%Blend creator,10%protocol buyback. - Mint and redeem fees:
50%liquidity providers,20%Blend creator,30%protocol buyback.
Buyback and burn
The protocol's share accumulates in USDG. On a recurring cadence that balance is used to buy $BLEND on the open market and send it to a burn address, permanently removing it from supply.
- Burns are executed onchain and verifiable in the burn history on the $BLEND page.
- Creation burns are additive to buyback burns — every Blend launched destroys supply directly.
- Burn volume is a function of protocol usage. Low activity means small burns; the mechanism makes no guarantee about price.
$BLEND has launched on Robinhood Chain, but the testnet preview does not collect real fees or execute real burns. Burn tracking and fee distribution begin with mainnet protocol activity.