Lido updates the EarnUSD fee model, with a starting rate of 0.2% plus 15%

The liquidity pledge protocol Lido announced an update to the EarnUSD fee model, which will reduce fixed fees and make fees more directly linked to the performance of the treasury. Previously, the EarnUSD fees were more platform-oriented, consisting of a 1% management fee plus a 10% performance fee.

According to the announcement, the new model caps the management fee at 0.5% plus a 20% performance fee, with the initial rate set at a 0.2% management fee plus a 15% performance fee. Lido stated that after the management fee is reduced from 1% to 0.2%, the costs of holding EarnUSD will be lower when returns are low, and the higher performance fee will make the charges more aligned with actual returns. Relevant fees will be displayed on the EarnUSD treasury interface.