Fee Structure

canoLiq applies a 12% protocol fee (fee_bps = 1200) on staking rewards. The rest of the reward — the other 88% — lifts the exchange rate for everyone. The fee itself is split across four destinations.

Fee Split (40/30/15/15)

Destination	BPS	Percentage	In plain terms
User Rebate	4000	40%	Goes straight back into the pool, raising the cCNPY exchange rate for all holders
DAO Treasury	3000	30%	Funds the protocol's operations and grants (treasury/canoliq)
Validators	1500	15%	Pays the committee validators securing the chain, pro-rata to stake
Buyback	1500	15%	Saved in buyback/pool to buy back CPLQ later

The four split fields must always sum to 10,000 bps (100% of the fee).

Insurance Auto-Routing

A small fraction of the treasury slice is skimmed into an insurance reserve:

• insurance_bps: default 500 (5% of the treasury slice ≈ 1.5% of the total fee)
• The skim turns off automatically once the reserve reaches its target (a fraction of peak TVL), and resumes as the protocol grows. See Insurance Fund for the full mechanism.

Fee Conservation

All fee components must sum exactly to the original fee amount. Integer truncation residuals are added to the treasury to ensure conservation:

userRebate + treasury + insurance + validators + buyback = feeAmount

When the insurance skim is off, the would-be insurance amount stays in the treasury — the equation still balances.

Reference Values

For a 1000 uCNPY reward with the 12% fee and default split (insurance skim active):

Component	Amount (uCNPY)
Post-DAO (5% cut applied upstream)	950
Fee (12% of 950)	114
User Rebate (40%)	45
Treasury (30% = 34, minus insurance skim)	32
Insurance (5% of the 34 treasury slice)	1
Validators (15%)	17
Buyback (15%)	17
Sum	114

note

Integer truncation means the per-component values are rounded; residuals are folded into the treasury so the column still sums to the full fee.

note

The 5% DAO cut is applied upstream by Canopy core. The plugin's pool sees only 0.95 × X. Do not double-apply the DAO cut inside the plugin.