Revenue Model
How does Curvance generate revenue for sustained development and growth?
Last updated
How does Curvance generate revenue for sustained development and growth?
Last updated
The Curvance protocol generates revenue through various streams that can benefit both veCVE token holders and the DAO. Each revenue source is designed to enhance the protocol’s sustainability, incentivize participation, and reward stakeholders, creating a balanced ecosystem where both veCVE holders and the DAO contribute to and benefit from protocol growth.
veCVE holders can receive specific revenue streams that align their interests with the protocol's performance, incentivizing their ongoing support and governance participation. Some revenue streams can be distributed as USDC at each epoch, while others provide additional benefits tied to holding voting power in the CVE Gauge System or migrating locks to certain chains:
Fee on Underlying Yield from Deposits (15% currently): veCVE holders benefit from a share of the yield generated by deposits, aligning rewards with overall protocol growth.
Bribe Rewards: Revenue from external voting incentivizes that affect CVE Gauge emissions.
Partner Protocol Incentives: Partner protocols can contribute incentives that veCVE holders receive, fostering collaboration and enhancing yield within the Curvance ecosystem.
Chain/Network Incentives: veCVE holders can earn a portion of incentives provided by partner chains and networks, rewarding them for contributing to the protocol's multichain expansion and presence.
The DAO also benefits from revenue streams that support long-term protocol development, security work, and expansion. These streams help the DAO remain self-sustaining and responsive to the needs of the overall Curvance community:
Fee on Active Loan Interest Rates: The DAO can receive a fee on active loans, enhancing its revenue as lending activities grow.
Application-Specific Sequencing: Revenue from selling liquidation order flow will make liquidations in the Curvance protocol highly profitable for the DAO.
Fee Switches on Zapping Tools: A fee switch on native Zapping tools can provide a revenue stream for the DAO, supporting innovative tooling and improvements.
Partner Protocol Incentives: Additional incentives from partner protocols can also benefit the DAO, supporting the protocol’s collaborations and growth initiatives.
The direction of specific revenue streams to veCVE holders and/or the DAO is intended to foster sustainable growth and robust governance within Curvance. By balancing benefits between veCVE token holders and the DAO, an ecosystem where stakeholders are motivated to contribute to and support the protocol’s ongoing success is created.
