Lido revises EarnUSD fee model with lower fixed fees, higher performance fees

Lido said it will revise the fee model for EarnUSD, its yield vault based on stablecoins, to introduce lower fixed fees, greater flexibility and a structure tied directly to vault performance. Lido said the previous model centered on platform fees, while the new structure places greater emphasis on performance-based fees. Under the change, the assets under management fee will shift from 1% to as high as 0.5%, while the performance fee will rise from 10% to as high as 20%. The initial rates are set at 0.2% for the assets under management fee and 15% for the performance fee. Lido added lowering the assets under management fee from 1% to 0.2% would reduce the cost of holding EarnUSD when yields are low.