Business Model
Frgmnt is built around a performance-based fee model that prioritizes user returns and long-term protocol sustainability. There are no fees to mint or redeem - the only fee is applied to yield generated, ensuring incentives are always aligned with the user.
How the Performance Fee Works
1. Vault Yield Generation
The Aggregation Vaults allocate stablecoins into selected yield strategies (DeFi or CeFi) to generate returns.
Performance Fee (20%)
Only the yield is taxed — 20% is collected by the protocol as a performance fee. There are no fees on principal.
Net Yield Distribution (80%)
The remaining 80% is auto-compounded, directly increasing each staker’s balance over time.
Fee Overview (Summary Table)
ACTION
FEE CHARGED
Mint fUSD
❌ No fee
Redeem fUSD
❌ No fee
Vault Yield Performance
✅ 20% performance fee
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