A51 Finance
  • ⚡A51 Yield Supercharger
  • ⭐A51 Liquidity Automation Engine
  • Overview
    • The A51 Finance Thesis
    • Protocol Architecture
    • 🌎A51 Ecosystem
    • Legacy as Unipilot (v2)
  • Protocol Features
    • Market Modes
    • Advanced Modes
    • Rebalancing Mechanisms
    • Single-Asset Deposit
    • Zap In
    • Boosted Positions
    • Strategies Marketplace
    • A51 Managed Vaults
  • Liquidity Automations
    • Market Modes
    • Advanced Modes
  • Example Strategies
    • Volatility-Hedged Yield Maximization Strategy
  • Tokenomics
    • FOO Tokenomics
      • 📃Background
      • 🗳️Become a Voter
      • 🪙What is $oA51?
      • 🪜Voting Mechanism
      • 💰Earn Revenue in $ETH
      • 📈Maximize Your Rewards
    • $A51 Token
    • Revenue Model & LPs
    • A51 Utility
    • Governance
    • Incentives
    • Token Distribution & Vesting
  • AMMs Support
    • Uniswap v3 and other AMMs
    • Uniswap v4
  • V2 Docs
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  • LP Revenue Distribution
  • Protocol Revenue
  • Protocol Net Revenue
  1. Tokenomics

Revenue Model & LPs

Revenue model of the A51 Protocol.

Liquidity Providers play a crucial role in sustaining the liquidity of the $A51 token ecosystem. In recognition of their contributions, they are compensated through a well-designed revenue distribution model.

LP Revenue Distribution

A51 charges a fee to the LPs who use A51 to provide liquidity.

Protocol Revenue

Half of the collected fees (50%) are used by the protocol to acquire wETH (Wrapped Ether). This wETH is subsequently distributed to those who have staked their A51 tokens, serving as a reward mechanism.

Protocol Net Revenue

The remaining 50% of the fees make up the Protocol Net Revenue. This portion is used by the protocol to buy back A51 tokens from the open market. This action creates buying pressure and serves as a countermeasure against inflation.

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Last updated 1 year ago