Fees & Protocol Revenue
Nerona's protocol-level economics are intentionally simple. Three fees, one destination.
Fee schedule
| Fee | Rate | Applies to | Destination |
|---|---|---|---|
| Management fee | 1% per annum | sUSDnr TVL | Nerona treasury |
| Performance fee | 10% | Yield generated on sUSDnr | Nerona treasury |
| Instant redemption fee | 1% | sUSDnr instant redemptions only | Nerona treasury |
There are no mint or redeem fees on USDnr itself at the protocol level. Users moving between USDnr and USDC will pay the 0.01% Uniswap V3 pool fee on the wM/USDC corridor — that fee goes to the pool LPs, not to Nerona.
How the management fee is charged
The 1% annual management fee is accrued continuously against sUSDnr TVL. In practice this shows up as a small downward pressure on the vault's exchange rate — the net yield you see in the sUSDnr price is already post-management-fee.
How the performance fee is charged
The 10% performance fee is applied to yield generated — not to AUM. If the underlying strategies produce 10% gross yield in a period, the vault recognizes 9% net yield to sUSDnr holders after the performance fee is taken. If the strategies produce zero yield in a period, there is no performance fee.
This is aligned by design: Nerona is paid when sUSDnr holders earn, and not paid when they don't.
How the instant redemption fee works
The 1% instant redemption fee applies only when a user chooses to bypass the 4-day unwind and exit immediately. It does not apply to standard redemptions. The fee is deducted at the point of redemption and routed to the treasury.
Where treasury revenue goes
All three fee streams accrue to the Nerona treasury. The treasury funds protocol operations, smart contract audits, insurance reserves, liquidity provisioning, and long-term development of the stack. Treasury allocation policy will be published separately as the token economics are finalized.
What Nerona does not earn
A few explicit non-items:
- No yield spread on USDnr. T-Bill yield on wM accrues to whoever holds the wM — in this case the USDnr issuance contract and, indirectly, the sUSDnr vault that uses USDnr as its base asset. Nerona does not skim a spread at the USDnr layer.
- No hidden fees on strategies. The 10% performance fee is the only take on yield. Underlying protocols (Aave, Pendle, Morpho, etc.) have their own economics that are transparent onchain.
- No fees on deposits or standard withdrawals. Entering USDnr and sUSDnr is free. Exiting via the 4-day unwind is free.