> For the complete documentation index, see [llms.txt](https://betterbanks-organization.gitbook.io/better-bank/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://betterbanks-organization.gitbook.io/better-bank/protocol-mechanics/treasury/protocol-income.md).

# Protocol Income

## **Primary Revenue Sources**

The protocol accumulates funds through multiple streams, ensuring **continuous liquidity and operational efficiency**:

* **Reserve Factor** – A 10% portion of **interest paid by borrowers** is protocol revenue**.**
* **Esteem Minting Fees** – When users mint **Esteem ($ESTEEM)** at the mint, the funds are protocol revenue.
* **Liquidation Penalties** – In the **Wildlands**, up to 10% of **seized collateral** during **liquidations** is regarded as revenue.
* **Favor Sales Tax – Selling Favor incurs a 50% tax**, which the protocol claims and sells over the primary Favor pair to generate revenue.

## **Secondary Revenue Sources**

* **Interest Revenue** – The Treasury itself acts as a **Stronghold depositor**, earning yield like any other user. This is **not processed as** protocol revenue, but instead **compounds directly** within the **treasury**.