Tokenomics
The full process of how tokens circulate and participants gain rewards
Last updated
The full process of how tokens circulate and participants gain rewards
Last updated
KLEVA Mint
75%
Users
Depositor(Staker) Profit, Lender Reward
15%
Dev Fund
Protocol Operation
10%
Eco Fund
KLEVA Ecosystem Expansion
Lending Fee
81%
Users
Depositor Profit
9%
Dev Fund
Protocol Operation
10%
Buyback & Burn
Usage for Buyback & Burn
Performance Fee
70%
Users
Leverage Investor Profit
10%
Users
KLEVA Staking Reward
10%
Dev Fund
Protocol Operation
10%
Buyback & Burn
Usage for Buyback & Burn
Liquidation Fee
100%
Buyback & Burn
Usage for Buyback & Burn(5% of Liquidation)
Liquidator Reward
100%
Dev Fund
Protocol Operation(2% of Liquidation)
Protocol Fee and Distribution
KLEVA's fee revenue is all related to leverage investments as followed:
Interest fees on borrowing: 19% of the total interest.
Auto-compound performance fees: 30% of the profits from leverage investment
Fee revenue is not fixed and it depends on the size of leverage investments, however, minimum 50% of total protocol fee is allocated as follows:
52.6% of the fee revenue from interest earned by borrowers: KLEVA token Buyback & Burn.
33.3% of the fee revenue from leverage investment DEX rewards auto-compound: KLEVA token Buyback & Burn.
33.3% of the fee revenue from leverage investment DEX rewards auto-compound: Additional rewards for KLEVA token staking
The remaining 47.4% of the fee revenue from interest earned by borrowers and 33.3% of the fee revenue from leverage investment DEX rewards auto-compound are utilized for protocol maintenance costs.
Leverage investors borrow assets from KLEVA, and pay interest costs.
The interest costs paid by the borrowing user are accrued at position closure.
81% of the interest costs paid by the borrowing user, excluding a 19% fee, are distributed to depositors as interest income. This means that the interest costs paid by the investor borrowing KLAY become earnings for KLAY depositors.
Profits for leverage investors include distribution earnings from governance tokens provided by the target DEX and trading fee earnings (DEX's profit depends on the policies of the specific DEX).
70% of profit from governance tokens, excluding 30% as a fee, is automatically reinvested through the Auto-Compounding system.
KLEVA token rewards are provided as compensation for lending assets. Since the KLEVA token is a reward for lending assets, it will not be provided without lending, meaning at a leverage ratio of 1.0
The interest rate for borrowing varies based on the utilization rate of the respective pool. (Check the interest rate variation model.)
The total earnings for leverage investments are calculated, including KLEVA token rewards.
