Revenue Model
The protocol has 2 core means of generating revenue and strengthening its USDD collateral reserve over time:
Protocol Fees: There is a fee of 0.5% in USDD per swap, for each gStable.
JustLend Yield: USDD received via Swap and Vaults are programmatically supplied via their respective smart contracts, to JustLend’s low risk USDD Market.
Up to 80% of Protocol Fees are distributed in gStables to Vault users monthly once fees are beyond an accumulated threshold of $1000 USDD value. This threshold can be adjusted to optimize energy efficiency for distributions.
Up to 60% of the JustLend yields generated are provisioned back into the gStable swaps to increase their collateral beyond 100% to cover more USDD redemptions during possible exchange rate fluctuations due to real world market forces.
Additional strategies will be employed in the future via community governance to ensure collective sustainable growth.
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