Berry Pools fees and economics

This page breaks down where every fee in Berry Pools will go. It covers successful pools, wilted pools, and the ongoing Nectar fee.

Berry protocol fees

• 1% of ETH collected, charged only on successful pools at harvest.
• 1% of deposited supply, charged only on successful pools at harvest.
• 2% of deposited supply, charged only on wilted pools at deadline.
• 10% of Nectar, which is the LP fees generated by Berry-created LPs, charged for the life of the LP position.

Where the rest goes

On a successful pool:

• 50% of the raised funds, after protocol fee, go to the creator.
• 50% of the raised funds, after protocol fee, become a permanent Uniswap V4 LP paired with the token.
• 99% of the deposited supply distributes to investors at harvest.

On a wilted pool

• 100% of investor ETH is refunded, with no fees.
• 98% of the creator's deposited supply is returned.

Worked example

1. 01A creator creates a pool with 18% of supply, a $200k target market cap, and a 10% bonus.
2. 02The effective entry market cap for investors is $180k.
3. 03The total ETH to raise, in USD equivalent, is roughly $32,400.
4. 04The pool fills to 100%, hits the target market cap, and completes cooldown.
5. 05Berry takes 1% of ETH, or $324, and 1% of supply.
6. 06The creator receives 50% of the remaining ETH, or roughly $16,038.
7. 07The LP is created with the other 50% of ETH paired with the deposited supply.
8. 08Investors receive their share of the project tokens proportionally.
9. 09Nectar begins flowing every 12 hours to all investors based on their token holdings.