Protocol Revenue

What is the revenue capture by the protocol?

80% of all interest paid by the borrowers is immediately distributed to the suppliers who deposited the assets in Liqwid markets. Interest earned is directly accrued to the value of your qToken. The part of the value created which is not distributed to the suppliers is called the “Net margin”. Currently Net margin is set to 20%, with 50% of this 20% Net margin accruing to the DAO Treasury reserve and 50% distributed to LQ stakers in the form of programmatic distributions. With LQ Buyback Program approved in a recent governance vote all Net margin is swapped into LQ which is then distributed to LQ stakers and the Liqwid DAO treasury.

Function of the DAO Treasury reserve

The DAO treasury is collecting reserves to fund future protocol developments and fund developers building products that scale adoption across the Liqwid ecosystem.

Function of the Programmatic Distributions

The programmatic distributions reward represents the percent of the value captured distributed back to LQ stakers.