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![PalladiumLabs Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1767905786301493248.png) Palladium Labs [@PalladiumLabs](/creator/twitter/PalladiumLabs) on x 34K followers
Created: 2025-07-24 13:18:42 UTC

Palladium 101: How is the Borrowing Fee set?

The fee is algorithmically adjusted. It rises when redemptions increase and decays when the system is calm. This discourages borrowing during peg stress and helps maintain stability. ⚖️

![](https://pbs.twimg.com/tweet_video_thumb/GwoB1ClbMAA8aed.jpg)

XXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1948372269061099657/c:line.svg)

[Post Link](https://x.com/PalladiumLabs/status/1948372269061099657)