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Fee Router

The Fee Router is the infrastructure-level contract that redirects pETH-denominated protocol revenue back into the ecosystem.

Its role is to collect pETH fees, process them through the bonding curve and send the resulting pETH rewards onward to pETH flows. pAsset flows, such as USDp minter interest, do not pass through the Fee Router and are distributed by their own market flow logic.

Strengthening pETH First

When pETH collected as protocol fees reaches the Fee Router, it is first burned at the pETH floor. This permanently removes the accumulated pETH from circulation, increasing the floor price of every remaining pETH while releasing the corresponding ETH from the bonding curve reserve.

That ETH is then immediately used to purchase newly minted pETH, which raises the bonding curve spot price. Only then are the newly minted pETH distributed as rewards.

Passing protocol revenue through the bonding curve enables the same value to strengthen the pETH floor before becoming rewards to be distributed throughout the ecosystem. And by the time those rewards reach their recipients, both the floor price and the market price of pETH have already benefited from protocol activity.

In sequence:

  1. pETH collected as fees is burned at the floor, raising the floor price and releasing ETH from the reserve.
  2. That ETH immediately buys newly minted pETH, raising the bonding curve spot price.
  3. The newly minted pETH is sent to pAsset markets and whitelisted recipients through pETH flows.

A Shared Economic Engine

The Fee Router collects protocol revenue denominated in pETH, processes it through the bonding curve and distributes the resulting pETH rewards according to the configured pETH flows.

This means every pETH reward distributed by the Fee Router has already contributed to strengthening both the floor price and the spot price of pETH before reaching its final destination.

TokenomicsRevenue Model