💰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.

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