💰Protocol Earnings
Protocol earnings (fees) and their redistribution to liquidity providers and xTORCH users is a key component of the protocol's design. The protocol's revenue is distributed as follows:
V3 protocol transaction fees distribution:
85% to Liquidity Providers in LP tokens.
7% in Dividends distributed to xTORCH holders using that plugin.
1.5% dedicated to TORCH buyback and burn.
3.5% to the Core Contributors funds.
3% to Algebra for licensing V3 AMM.
Steer’s vaults share 1/3 of their performance fees with Hercules; i.e., 8% distributed as follows:
4% in Dividends redistributed to xTORCH holders using that plugin.
4% to operating expenses.
V2 protocol transaction fees distribution:
60% to Liquidity Providers in LP tokens.
21.5% in Dividends distributed to xTORCH holders using that plugin.
12.5% dedicated to TORCH buyback and burn
6% to the Core Contributors fund.
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