Fees and Rewards
The term "fee" within Azuro protocol refers to the percentage of the Pool's profit that is distributed as rewards to those who contribute to its operation.
Currently, there are three types of contributors in the Pool, each with a corresponding fee: Azuro DAO fee, Data Provider fee, and Affiliate fee. The part of the profit and loss that is not distributed among these three participants remains to be allocated to the LP liquidity deposits.
Azuro DAO and Data Providers have the same reward mechanism: after the completion of each Condition, the profit or loss of the pool is multiplied by the fee rate and added to the contributor reward balance. If the balance is positive and enough time has passed since the previous withdrawal, the contributor can withdraw their due reward.
The Affiliate(Frontend) reward mechanism differs from that of Azuro DAO and Data Providers. At the moment, in all Betting Engines, Affiliates only share in Pool's profits, but not losses. The calculation of Affiliate rewards is determined individually by each Betting Engine. For example, because profit calculation for Core Affiliates is a gas-expensive operation, in withdrawal requests, Affiliates also provide a list of Condition IDs for which they want to get their reward.
Currently Azuro Pool liquidity providers get the majority share of pool's profits. However, it is expected that the settings will be updated as per the table below, as usage increases.
Actor | % share of profit | Address |
|---|---|---|
25* | N/A | |
60* | N/A | |
10 | 0x77e803ad3a4a52d5ab609451b8ba60cea7a5bea6 | |
5 | 0xef18f2f054a7ad2909333051aa42d5c0bb3f92f6 |
* In the current protocol implementation, Frontends only share in the Pool's profit but not losses, which makes it difficult to accurately calculate profits. For more information, see Fees and Rewards
Last modified 25d ago