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.

PreviousTreasuryNextFund Usage

Last updated