Tokenomics

The full process of how tokens circulate and participants gain rewards

Token Flow

Distribution

Category	%	To	Details
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.

Interest Income (Depositor's Earnings)

• 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.

Investment Profits (Leverage investors's Earning)

• 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.