Revenue Streams and Business Model
The Superblock Protocol has a robust revenue model that supports the sustainability and growth of the ecosystem. The protocol generates revenue through various streams, ensuring a steady inflow of funds for development, maintenance, and further enhancement of the ecosystem.
Trading Fee: SBX holders can earn revenue through a 0.25% trading fee charged on the USDx/USDC pool on decentralized exchanges, such as Uniswap.
Protocol Fees: The Superblock Protocol charges a small fee on all transactions made on the network. These protocol fees contribute to the revenue generated by the protocol. Currently set at 0.1% of the transaction value, these fees help fund ongoing protocol development and maintenance activities.
Yield on Collateral: The Superblock Protocol optimizes the collateral holdings by investing them in various decentralized finance (DeFi) protocols. These investments generate yield and interest on the collateral, which is used to buy back and burn SBX tokens. This buyback and burning mechanism reduces the circulating supply of SBX, increasing the value of the remaining tokens and benefiting SBX holders.
Interest on USDx: The Superblock Protocol also earns interest on the USDx held in its treasury. This interest income contributes to the protocol's revenue stream. The interest earned is used to buy back and burn SBX tokens, reducing the supply and potentially increasing the value of the remaining tokens.
Liquidity Mining Rewards: The Superblock Protocol incentivizes liquidity providers by rewarding them with SBX tokens. Liquidity providers who contribute to the Superblock liquidity pools receive a percentage of the trading fees generated by the pools. This rewards program encourages liquidity provision, ensures sufficient liquidity in the pools, and contributes to the revenue generated by the protocol.
Staking: the protocol also generates revenue through our comprehensive staking program, detailed below “Staking and Rewards in the Superblock Protocol”.
Repurchase Plan: Livepay, the crypto payment gateway, plans to use 100 billion SBX tokens for repurchase and burning. This repurchase plan utilizes 20% of the profits generated by Livepay each quarter to buy back and burn SBX tokens until 100 billion tokens have been burned. The repurchase Livepay's plan reduceswill be allocated for buying back and burning SBX, reducing the overallcirculating supply of SBX tokens. This repurchase plan is designed to create a deflationary effect, potentially increasing the value of eachthe remaining tokentokens andas creatingsupply adecreases deflationaryover effecttime.
The revenue generated from these streams ensures the sustainable operation of the Superblock Protocol and supports ongoing development and improvements. The protocol's focus on generating revenue while providing value to its participants creates a strong foundation for the long-term success and growth of the ecosystem.
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