💰Revenue Structure

The revenue structure of the Satoshi Protocol is designed to support its sustainability and growth while providing value to its users. The protocol generates revenue through various channels, which are distributed among stakeholders to incentivize participation and maintain system stability.

Key Revenue Streams

1. Minting Fees:

   • A one-time minting fee that ranges between 0.5% to 5% is charged when users mint satUSD. This fee is applied to the total amount of satUSD minted. Learn more about minting fees here.

2. Interest Fees:

   • A fixed annual interest fee is applied to outstanding debt. Currently, this interest rate is set at 0% for satUSD minted against Bitcoin collateral, making it an attractive option for users. ( why 0% interest )

3. Redemption Fees:

   • When users redeem satUSD for collateral, a dynamic redemption fee is applied, ranging from 0.5% to 5%. This fee is calculated based on market volatility and helps manage the supply of satUSD.

4. Flash Loan Fees:

   • The protocol offers flash loans, which are short-term loans without collateral, for a fee of 0.09%. This service facilitates quick trades and adds to the protocol's revenue.

5. Liquidation Fees:

   • During liquidations, a fee of 0.5% of the collateral is collected. This fee is split equally (50%/50%) between the protocol and the person who initiates the liquidation, incentivizing users to maintain healthy collateral levels.

Revenue Distribution

All revenues generated by the Satoshi Protocol are pooled together and distributed entirely (100%) among OSHI stakers based on their sOSHI holdings. This approach aligns the interests of the protocol with those of its users, fostering a sustainable and mutually beneficial ecosystem.

By implementing this revenue structure, the Satoshi Protocol ensures its operational soundness while rewarding participants for their contributions to the ecosystem.