# Fees & Revenue

### Revenue Streams

Coinshift generates protocol revenue through two primary streams, all enforced transparently onchain: 

#### 1. USDL Minting Fee Share

Through a direct partnership with Paxos International, Coinshift earns up to **0.2%** on all USDL minted via the csUSDL platform.

> 📈 **Example:**\
> A 20 bps share on $16 billion AUM would generate **$32 million per year** in revenue.

This model aligns Coinshift’s growth with USDL adoption and creates a stable revenue base.

***

#### 2. Vault Performance Fee

Coinshift may charge a performance fee — a share of the interest borrowers pay to access wUSDL from the vault. csUSDL currently charges **0%**, encouraging capital inflow and growth.

In the future, SHIFT holders will govern this parameter. The target range is **5–10%** of borrower interest.

> 📈 **Example:**\
> At a 10% performance fee on a 2% borrow APY, Coinshift earns an effective 0.2% on AUM — or **$32 million annually** at $16B AUM.

***

### Current Fee Structure (csUSDL)

| Fee Type            | Rate            | Description                                               |
| ------------------- | --------------- | --------------------------------------------------------- |
| **Mint Fee**        | 0%              | No fee when minting csUSDL                                |
| **Redemption Fee**  | 0%              | No fee when redeeming csUSDL                              |
| **Performance Fee** | 0% (governed)   | Set by governance. Target range: 5–10% of borrow interest |
| **AUM Fee**         | 0.2% annualized | Charged on idle wUSDL held in the vault                   |

***

### Strategic Revenue Alignment

Coinshift’s revenue model is designed to grow alongside csUSDL adoption and vault usage:

* As more users mint USDL via Coinshift, stable revenue grows through the minting fee share.
* As vault utilization increases, performance fees scale with lending demand.

This value flows back to the network through the SHIFT token economy. Governance may direct protocol revenue toward:

* **SHIFT buybacks and burns** to reduce token supply
* **Treasury accumulation** for future development and stability
* **Contributor incentives and partner programs** that increase adoption

The more csUSDL is used, the more value is generated — and the more SHIFT reflects that growth.


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