Yield & Revenue Flow: Protocol Monetization Architecture

LiquidBots is not fueled by inflationary means. It earns revenue through real strategy execution - grid trades, arbitrage, DCA flows, and vault performance. That revenue is shared across ecosystem participants, strategists, traders, and the protocol treasury via a clearly structured on-chain model.

Core Revenue Sources

Source	Fee Type	Paid By	Notes
Execution Bots (Grid, DCA)	0.07% base fee based on position size per fill	Traders (bot users)	Fee captured in USDC or base asset
Copy Vault Performance Fees	1% of positive returns	Vault depositors	Split between strategist + protocol [different fee structures]
API Access (Future)	Enterprise licensing	Quant funds, infra	Optional premium API for integration

Revenue Routing Flow

All fees collected by the protocol are routed through a unified Performance Router, then split according to policy weights voted on by governance for certain allocations. However, certain portions of the revenue stream will always be controlled by the protocol and used at the protocol’s discretion for business sustainability & profitability.

Default Allocation (Tunable via DAO for certain allocations):

Destination	% of Net Revenue
Planned & token accumulation [TWAP/OTC] of $LBOT	5%
Trader Incentives	10%
Treasury Reserve	45%
Insurance Fund, Protocol Rebates [API downtime, integration fallouts, etc.]	10%
Dev Ops Buffer	10%
Operational Overheads	10%
Liquidity & Market Making Related Operations	10%

_{*Allocation of revenue will always be subject to change by protocol management at protocol's discretion in order to make best decisions for contribution towards ecosystem stability & protocol longevity.}

Notes on Execution

• LBOT Accumulation may occur via scheduled TWAP buys or OTC channels - not announced publicly to avoid frontrunning

• Trader Incentives are temporary and adjustable - calibrated around usage surges or volatility windows

• Treasury receives the largest share - reinforcing the DAO as a capital allocator, not an emitter

• Insurance & Rebates provide a critical user trust mechanism — minimizing loss risks and preserving confidence

• DevOps & Ops ensure LiquidBots remains performant without constant token emissions or the need to liquidate tokens on the market

• Liquidity Ops are non-leaky - funds remain in protocol, and can rotate between venues or chains based on TVL and execution depth

Revenue Flow Diagram

          [ Protocol Revenue (USDC / Native) ]
                            ↓
                 [ Performance Router ]
 ↓        ↓         ↓          ↓        ↓         ↓        ↓
5%       10%       45%        10%      10%       10%       10%
LBOT     Incent.   Treasury   Risk     DevOps    Ops       MM
Accum    Layer     Reserve    Fund     Buffer    Overhead  Liquidity