Fees
Every operation in the Orange Dollar protocol charges a flat 1.5% fee.
Which Operations
| Operation | Fee |
|---|---|
| Mint OD | 1.5% deducted from OD output |
| Burn OD | 1.5% deducted from WBTC output |
| Mint ORC | 1.5% deducted from ORC output |
| Burn ORC | 1.5% deducted from WBTC output |
Where Fees Go
Fees stay in the WBTC reserve. They are not paid out to anyone — they increase the total WBTC held by the reserve contract.
Since ORC represents a claim on the reserve's equity (total WBTC minus OD liabilities), accumulated fees increase the value of each ORC over time. This is how ORC holders earn yield.
Example
If you mint OD by depositing 1 WBTC:
- Fee: 0.015 WBTC (stays in reserve)
- Used for OD calculation: 0.985 WBTC
- OD received: 0.985 x TWAP price
The 0.015 WBTC fee permanently increases the reserve, benefiting all ORC holders.