The Boost Protocol collects protocol fees from budgets on 3 distinct occasions:

  • At time of Boost creation, transferring assets to incentives from budgets
  • On claim, recouping assets from the incentive’s backing asset
  • On retrieving assets from an incentive back to a budget

At time of writing, the base protocol fee in basis points is 10% and, for any qualifying event, the math can be summarized with the following equation:

const protocolFee = 1000n // 10% in basis points
const protocolFeeDenominator = 10000n // 100% in basis points

const fee = (amountTransferred * protocolFee) / protocolFeeDenominator

​
Calculating fees for Boost creation

For ERC20 incentives, you’ll want to ensure your budget has enough assets to cover the full amount that can be claimed by users, as well as the protocol fee. The following is a simple code sample that can help ensure your new Boost does not revert with an Insufficient Funds error.

// Initialize your incentive configuration
const erc20Incentive = core.ERC20Incentive({
  asset: '0xERC20',
  strategy: StrategyType.POOL,
  reward: 100n,
  limit: 10n,
  manager: budget.assertValidAddress(),
});

// Acquire the total amount that can be distributed from the incentive
const totalBudget = await erc20Incentive.getTotalBudget()

// Calculate the protocol fee
const fee = await core.calculateProtocolFee(totalBudget)

// Calculate the total amount required to fund the incentive
const totalFundingAmount = totalBudget + fee

// Approve your erc20 to send the full funding amount to the budget
await writeContract(wagmiConfig, {
  abi: erc20Abi,
  address: '0xERC20', // The address of the ERC20 token you want to approve
  functionName: 'approve',
  args: [
    budget.assertValidAddress(), // The address of the budget account
    totalFundingAmount
  ],
})

// Allocate assets to the budget from your account
await budget.allocate({
  amount: totalFundingAmount,
  asset: '0xERC20',
  target: "0xME",
})

// On create, `totalBudget` will be transferred to incentive, and `fee` will be transferred to the protocol
const boost = await core.createBoost({
  ...otherParams,
  incentives: [erc20Incentive],
});
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