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Strip does not charge a protocol fee on deposits, withdrawals, or harvested yield. Principal enters through StripVaults, Principal Tokens represent deposited value, and realized yield follows the protocol’s routing rule: half compounds back into the vault, and half is used to buy and burn STRIP. Yield is not taxed at the protocol level. It is routed. The treasury earns only when the system generates market activity. There is no management fee and no performance fee on yield. The protocol does not take a cut from the vault yield stream. Swap fees are separate from harvested yield. PT/STRIP liquidity pools charge a fixed 0.3% swap fee on every trade, and the hook splits that fee inside the pool on each swap.
  • 70% routes to stSTRIP, where it is distributed to staked STRIP holders.
  • 20% routes to the team treasury, funding protocol operations and ongoing development.
  • 10% remains in pool reserves, accruing to liquidity providers.
This creates two different income paths for liquidity providers. Their PT/STRIP liquidity earns the LP share of swap fees through pool reserves. Their staked sWLP position competes for STRIP emissions and Lockless Boost. The STRIP they earn can then be staked into stSTRIP to capture the larger fee flow routed to STRIP stakers. Liquidity earns STRIP. Staked STRIP captures protocol fee flow. That distinction matters. LPs are not automatically entitled to the 70% stSTRIP flow by providing liquidity alone. They capture it by turning earned STRIP into stSTRIP, adding another layer of alignment between liquidity provision, STRIP ownership, and protocol activity. The split is enforced by the hook. There is no manual claiming process for the protocol to decide later, and no governance distribution step. Fees are routed when activity happens. Strip separates the flows because they serve different jobs. Deposits create principal claims. Yield creates STRIP demand and collateral growth. Swap activity creates fees for STRIP stakers, liquidity providers and operations. Emissions allocate STRIP to users strengthening the system.