Mint Fee

The Agilely Protocol's Mint Fee is a critical charge applied when users borrow our native stablecoin, USDA. This fee is essential for maintaining USDA's value stability and managing borrowing costs.
The Mint Fee calculation centers on a dynamic variable called the baseRate, which adjusts based on the protocol's conditions. The fee rate is bounded between 0.5% and 5%, ensuring fairness in borrower charges and adhering to the protocol's principles. This mechanism accurately reflects borrowing activity, promoting a sustainable borrowing environment.
Agilely's approach involves aligning the Mint Fee with the baseRate. This strategy encourages users to retain their USDA holdings instead of immediate redemption, fostering a stabilized price and discouraging abrupt fluctuations.