💰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

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.

V3 Vaults

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

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.