Yield & Fees

Understanding how yield is generated and fees are applied in Bend vaults is crucial for building accurate earn products and setting proper user expectations.

Yield Generation

Bend vaults generate yield through capital allocation to various lending markets on Berachain.

Where does the yield come from?

Borrower Interest

Borrowers in underlying lending markets pay interest on their loans.

Market Distribution

Interest flows to lenders in each market based on their supplied assets.

Vault Collection

Vaults collect interest as lenders across multiple markets.

Share Price Increase

Vault's total assets increase, raising the share price for depositors.

Depositor Interest

Depositors earn the interest paid by borrowers as their position's share value increases in token terms.

Fee Mechanism

BEND vaults implement performance fees and platform fees. Both are taken as a cut on the native yield earned by lenders.

INFO

NOTE: The yield coming from Proof-of-Liquidity $BGT is not subject to any fee.

Platform Fee

Platform fee is charged at the market level and retained by Berachain foundation.

Performance Fee

Performance fee is charged at the vault level and split between the foundation (0%)* and the curator (100%)*.

*Values are subject to change.