💰Revenue Distribution

DTX generates revenue from four primary sources:

1. Swap Fees

2. Open/Close Fees

3. Borrowing Fees

4. Liquidation

Swap:

Of the 0.3% swap fee, 0.25% is distributed to liquidity providers (LPs), and 0.05% is distributed to the DTX Treasury.

Perpetual:

Of the total revenue generated, 80% is distributed to liquidity providers (LPs), while the remaining portion is allocated to the DTX Treasury.

Liquidity Providers

LPs play a crucial role as the suppliers within the protocol and are therefore rewarded for their efforts as market makers. As an incentive, LPs will initially receive the swap fees and 80% of the protocol fees generated from the perpetual trading functionality, which stands as the most substantial revenue share among swap and margin-based perpetual protocols in the DeFi space.

DTX Treasury

A portion of the revenue is allocated to the DTX treasury to support various operational aspects. The utilization of this treasury includes, but is not limited to, activities such as compensating core contributors, sponsoring trading competitions, providing trader rebates, and offering insurance coverage to liquidity providers (LPs) in case of unexpected protocol losses.