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Strategy Rewards and Fees

Rewards

Strategy depositors earn from:

  • Trading fees — From the underlying LP position
  • Protocol gauge rewards — Boosted by the Liquid Locker's locked governance tokens

Fee Structure

All strategy fees are performance fees — charged when rewards are harvested, not on deposits or withdrawals.

Fee distribution typically includes:

  • sdToken holders — Rewards the Liquid Locker that provides boost
  • vlSDT holders — Rewards governance participants
  • DAO treasury — Funds protocol development

The specific allocation varies by protocol to optimize for each integration's economics.