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# Fee Router

> The Fee Router component redirects value generated by Polaris back into the ecosystem.

Canonical URL: https://docs.polaris.finance/design/fee-router
Markdown URL: https://docs.polaris.finance/design/fee-router.md
Section: Protocol Mechanics

Documentation index: https://docs.polaris.finance/llms.txt
Full documentation bundle: https://docs.polaris.finance/llms-full.txt

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The Fee Router component redirects value generated by Polaris back into the ecosystem.

Its role is to collect protocol revenue denominated in pETH, process it through the bonding curve and distribute the resulting rewards according to the pETH 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 allows 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.

## 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.
