
LST Yield
The LSTs held in collateral pool are projected to yield a base APY between 8-11%. A large majority of this yield is allocated to those participating in the stability pool, with the remainder serving as a direct source of revenue for Hylo’s treasury.Mint/Redeem Fees
Minting and redemption fees are the protocol’s primary revenue stream. All trading transactions incur a fee on the order of basis points, with fees varying depending on health of the protocol. See Risk Management for an overview of the fee structure.As hyUSD gains distribution as a quoted asset for token pricing, the fee revenue stream may become more important than staking yield. Increased usage will create more arbitrage opportunities, leading to higher minting and redeeming volumes.