Where revenue goes
Every fee OMEGA earns is shared out once a week, by five published shares. No running costs are taken.
#Where it comes from
- Borrow fees, paid by borrowers.
- The peg module's swap fee, 0.1% of each swap.
- The protocol's share of liquidations: 10% of each liquidation bonus, in ADA.
#The weekly split
All fees are paid to the revenue contract. Each week, from Monday 00:00 UTC, anyone can split what's arrived by five shares that always add up to 100%:
| Share | At launch | What it does |
|---|---|---|
| OMEGA stakers | 35% | Paid to stakers for the week |
| Stability pool depositors | 35% | The oUSD streamed to depositors over 7 days, the ADA shared at once |
| Backstop | 20% | Grows OMEGA's own stability pool deposit |
| Liquidity | 10% | Builds up for OMEGA's own oUSD liquidity on Minswap |
| Insurance reserve | 0% | Off at launch; can be switched on |
Each share can only move by 5 points per change, within published limits, with 7 days' notice.
#No running costs
None of the revenue pays OMEGA's running costs. The team earns only what its own staked OMEGA earns, like any other staker. Running costs are paid by the treasury.
#The backstop and the ADA desk
The backstop's share builds up OMEGA's own deposit in the stability pool, which can never be withdrawn. The ADA it receives, from its share of revenue and from liquidations, is sold for oUSD through the ADA desk: anyone can buy it at a small discount (1% at launch, growing by half a point for each week nobody buys, up to 3%), paying oUSD into the same pot. So the backstop grows in oUSD and its gains compound.
#The insurance reserve
The reserve can hold up to a set share of all outstanding debt (10% at launch). It's switched off at launch, because the stability pool and the backstop cover the same need; governance can turn it back on with notice. While the reserve is full, its share goes to stability pool depositors.