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# Periodic Revenue Distribution

Ensuring fairness for all protocol LPs

**Why Periodic Revenue Distribution ?**

Using periodic revenue distribution, LPs will fairly earn a portion of fees based on the time they provided capital. This is much more effective than distributing returns all at once since it avoids situations where late LPs earn a higher return for the amount of time they were staked.

The current period of distribution is set to be every hour, with new fees projected to return over a period of 7 days. This is on a rolling basis, so any accumulation of fees will continuously be distributed.

For example, consider a scenario where a total of $1,000 in fees is generated from liquidations. In this case, $1,000 will be distributed to the LP vault. Let's assume that the vault has $10,000 in TVL. This means that over 7 days (or 7 * 24 = 168 hours), every hour, 1 / 168 of the new fees, or $5.95 will be distributed.

Last modified 2mo ago