System Revenue
Last updated
Last updated
The distribution of protocol transaction fees is structured as follows:
Liquidity Providers receive 60% in LP tokens.
YUM holders get 22.5% as dividends.
12.5% is allocated for DSP buyback and burn.
Operating expenses account for 5%.
Liquidity Providers are allocated 85% in LP tokens.
Dividends to YUM holders constitute 7%.
DSP buyback and burn is set at 3.5%.
Operating expenses take up 3%.
Algebra receives 1.5% for licensing the V3 AMM.
DonutSwap gains a fee share from Gamma’s vaults, approximately one-third of a 25% performance fee, equating to 8% in total, divided into:
5% as dividends to YUM holders.
3% towards Operating expenses.
This results in Gamma retaining 13.25% of the total gross fees generated by their vaults.