Protocol Service Fees Waterfall
Last updated: June 23, 2025
The Liquid Collective protocol charges a service fee set at 10.0% of network rewards for LsETH and 8.0% of rewards for LsSOL (excluding block rewards).
On Solana, the protocol's service fee is only applicable to inflation/voting rewards and MEV rewards received by stakers. Node operators that perform network validator services for staked SOL retain all block rewards but do not receive a portion of the service fee.
The protocol's service fee is minted in receipt tokens (or "LsTokens") that evidence ownership of staked tokens on the relevant network (e.g. LsETH for service fees on the Ethereum network, LsSOL for service fees on Solana) daily.
ETHEREUM PROTOCOL SERVICE FEE WATERFALL COMPONENTS
- Collective Slashing Coverage Treasury: A portion of the protocol's service fees are allocated to a collective slashing coverage treasury that continues to accrue and is deployed in the event of a slashing incident.
- Platforms: Enterprises that integrate to provide on/off ramps and perform KYC/AML and sanctions checks on prospective and participating stakers may be eligible to earn a service fee rebate.
- Node Operators: Validators that perform network validation services for staked tokens earn a percentage of the protocol's service fees.
- Service Providers: Technology providers that contribute to the development of the protocol across networks earn a percentage of the service fees generated by the relevant network(s) on which the technology provider contributed its services.
- Treasury Reserve: A portion of the protocol's service fees is allocated to the network's Treasury.
SOLANA PROTOCOL SERVICE FEE WATERFALL COMPONENTS
- Platforms: Enterprises that integrate to provide on/off ramps and perform KYC/AML and sanctions checks on prospective and participating stakers may be eligible to earn a service fee rebate.
- Liquidity Providers: Liquidity providers that provide instant liquidity for exchanging LsSOL to SOL.
- Treasury Reserve: A portion of the protocol's service fees are allocated to the network's Treasury.
