Lido Overhauls EarnUSD Fee Structure to Align with Performance

Lido, a leading decentralized finance (DeFi) platform, has made a significant change to its EarnUSD fee structure, aiming to make the cost of holding EarnUSD more closely tied to its actual performance.

The platform has reduced the fixed asset-under-management fee on EarnUSD from 1% to 0.2%, while increasing the performance fee from 10% to 15%. This new structure is designed to make the cost of holding EarnUSD more attractive to users, particularly during periods of low returns.

Lido also plans to increase transparency by displaying fees directly on the EarnUSD vault user interface, allowing users to see the costs of holding the asset in real-time.

The change is part of Lido's strategy to stay competitive in the DeFi market, where platforms are vying for yield-seeking capital.