Revenue Distribution
All trading fees from Avantis go towards liquidity providers and the protocol treasury
Last updated
All trading fees from Avantis go towards liquidity providers and the protocol treasury
Last updated
There are two major sources of revenues in Avantis:
Trading fees: Dynamic open fees, close fees and margin-fees, as explained in detail in the section
Vault Deposit / Withdraw fees: LPs may be charged a deposit or withdraw fee, which varies based on the protocol health and an LP's lock duration. These are explained in detail in the section
LPs represent the supply side of the protocol, and are hence compensated for the work they put in as market makers. LPs currently receive 60% of all protocol fees ! LPs also take counter-trading risk against traders.
A portion of the protocol treasury will go towards everything related to protocol liquidity. This includes protocol owned liquidity for the USDC vault, sponsoring trading competitions and rewards campaigns (see ), giving trader rebates, sponsoring gas, and insuring LPs in case of unforeseen protocol losses. The goal will always be to direct 100% of protocol treasury revenues directly or indirectly towards LPs and traders.