Protocol Revenue

This page overviews Velora revenue streams, clarifies Partner's revenue structure, and helps users understand the business model better.

Velora sources of revenue

There are currently two main types of revenue for Velora:

Swap fees

When accessing through a Partner, it's up to the Partner to decide if they want to charge a fee on the swaps facilitated through Augustus Swapper (Market Mode) or Velora Delta. If opting for Augustus, Velora DAO collects 15% of the accrued swap fee, while in Delta, fee splitting only happens for surplus-generating swaps.

For more information on how Swap Fees are implemented, please refer to the API Partners - Revenue Share Overview Section.

Surplus

Another potential fee to consider is Surplus: the decentralized markets are always on the move; sometimes, competing transactions can push the price lower (or higher) after submitting the transaction. Velora implements several mechanisms to hedge for it, such as displaying the "Minimum Received" amount or securing prices for a set amount of time with market makers quoting through AugustusRFQ.

Velora DAO collects the surplus to grow further and perpetuate the protocol. By default, in Market Mode, Velora DAO collects 100% of the surplus generated, while in Delta Mode, the DAO collects 50%.

Partners who opt out of charging a Partner Swap Fee can choose to keep 50% of the surplus or direct it to the user, paid in the destination token. For more information on how Partner Fees are implemented, please refer to the API Partners - Revenue Share Overview Section.