Protocol Service Fees Waterfall
Last updated: April 1, 2024
Effective April 1, 2024, the Liquid Collective protocol charges a service fee set at 10.0% of network rewards. The protocol's service fee is minted in receipt tokens (or “LsTokens”) that evidence ownership of staked tokens on the relevant network (e.g. LsETH for service fees on the Ethereum network) daily, based on the network rewards programmatically generated by the network.
PROTOCOL SERVICE FEE WATERFALL COMPONENTS
- Collective Slashing Coverage Treasury: A portion of the protocol's service fees are allocated to a collective slashing coverage treasury that continues to accrue and is deployed in the event of a slashing incident.
- Platforms: Enterprises that integrate Alluvial's API to provide on/off ramps and perform KYC/AML and sanctions checks on prospective and participating stakers may be eligible to earn a service fee rebate.
- Node Operators: Validators that perform network validation services for staked tokens earn a percentage of the protocol's service fees.
- Service Providers: Technology providers that contribute to the development of the protocol across networks earn a percentage of the service fees generated by the relevant network(s) on which the technology provider contributed its services.
- DAO: A portion of the protocol's service fees are allocated to the DAO's Treasury.
