Financial flows

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General concepts

Revenues are derived from the following sources:

• Rewards deduction on HEC markets;
• Interest on LEC & HEC markets;
• WTSs underlying stablecoins;
• Peg Keepers arbitrage profits;
• Liquidation fees and liquidations proceeded by Tangent’s liquidation bot.

Then, revenues are used for 3 distinct purposes:

• Distribute vote incentives so liquidity pools receive liquidity mining rewards;
• Maintain a competitive yield for sUSG;
• Collect protocol fees to reward vsTAN holders, and strengthen the Operations Treasury.

All revenues are collected on the same contract and distributed between each of the destinations mentioned above.

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Illustration

The figure below shows how protocol revenues are shared.

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Current distribution

Below is the current distribution of the protocol revenue between vote incentives, sUSG, and protocol fees.