Revenue Distribution

All trading fees go towards liquidity providers and the protocol treasury.

There are three major sources of revenues for Bloom LPs and traders:

1. Trading Fees: Dynamic open fees, close fees and margin-fees, as explained in detail in the fees section.

2. Vault Withdraw / Unlock Fees: LPs may be charged a withdraw fee, which varies based on the protocol health and an LP's lock duration. These are explained in detail in the Liquidity Provision section.

3. Blast Airdrop: 100% of Bloom's developer portion of the Blast airdrop will go towards bootstrapping long-term LPs and traders.

Liquidity Providers (100% of fees)

LPs represent the supply side of the protocol, and are hence compensated for the work they put in as market makers. At this time, LPs will receive 100% of the protocol fees, which represents the highest revenue share across any margin-based perpetuals platform in DeFi.

Protocol Treasury: Liquidity and Development (0% of fees)

Currently, 0% of all fees will go towards everything related to protocol liquidity. In the future, we will increase protocol fee share to 30%. This includes protocol owned liquidity for the USDB vault, sponsoring trading competitions, giving trader rebates, sponsoring gas, and insuring LPs in case of unforeseen protocol losses. Initially, the team will direct this revenue, however over time, the DAO can vote on splitting this liquidity as it sees fit.