Treasury LP Revenue Distribution

The Treasury's Uniswap V3 liquidity positions generate trading fees accumulated without purpose (≈977,000 USDC so far). These fees represent protocol-owned revenue independent of exchange operations.

Once per calendar year (end of August), 69% of all accumulated LP fees (in USDC) will be distributed to eligible stakers — 674,000 USDC for 2026.

Eligibility Rules

To qualify for the annual August LP fee distribution, users must meet both requirements:

  • Have an active COMMANDER or LEGEND tier stake at the moment of distribution (end of August).

  • Achieved at least 10M global trading volume (PERPS and OPTIONS; pre launch markets are NOT included) during the 12 months preceding the distribution, while holding an active COMMANDER or LEGEND tier stake.

circle-info

If a user's tier drops below COMMANDER (unlocks or downgrades to EXPLORER/CADET) and they subsequently re-stake to COMMANDER or LEGEND, their volume counter resets and they must achieve the 10M volume requirement again from the time of their new stake.

Tier Allocation

The annual distribution of accumulated LP fees follows a fixed allocation that rewards longer-term commitment tiers.

Lock Duration Tier
Annual LP Fee Share

CADET

Not Eligible

EXPLORER

Not Eligible

COMMANDER

30% of Total

LEGEND

70% of Total

Reward Allocation Formula

Within each eligible tier (COMMANDER and LEGEND), individual rewards are calculated using a Weighted Allocation Score that accounts for both the user's staked amount and their cumulative trading volume.

Score Calculation

Each eligible user's Allocation Score is computed as:

Where:

  • StakedAmount_i = the user's staked AEVO amount at the time of distribution.

  • Σ StakedAmount_tier = the sum of all staked AEVO amounts across eligible users within the same tier.

  • Volume_i = the user's cumulative trading volume (PERPS + OPTIONS, excluding pre-launch markets) during the 12 months preceding distribution, accumulated while holding an active COMMANDER or LEGEND tier stake without interruption.

  • Σ Volume_tier = the sum of all qualifying trading volume across eligible users within the same tier.

  • 0.30 / 0.70 = the Stake Weight and Volume Weight, respectively.

Reward Calculation

Each user's individual reward is their proportional share of the tier pool:

Where:

  • 30% of a user's allocation score is determined by how much AEVO they have staked relative to other stakers in their tier.

  • 70% of a user's allocation score is determined by how much trading volume they have generated relative to other stakers in their tier.

Notes

  • Stakes made multiple times during the year by the same user are aggregated for distribution calculations.

  • Volume is only counted while the user holds an active COMMANDER or LEGEND tier stake. If a user's tier drops below COMMANDER and they re-stake, their volume counter resets from the time of the new stake.

  • A user staking as LEGEND on December 15, 2025 who trades more than 10M qualifies for the August 2026 distribution. Their stake extends through December 15, 2026, but they will NOT automatically qualify for the August 2027 distribution unless they initiate another COMMANDER or LEGEND tier stake.

Last updated