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Revenue Streams

How does the protocol earn revenue?

1. Repayment Fees

Users pay a repayment fee equal to 0.5% of their debt when repaying their stablecoin debt to unlock the underlying collateral. This fee is denominated in the collateral token.
Example: A user has 100 USD worth of BNB and 50 gDAI in debt. They then repay 10 gDAI. The fee paid by the user would be 0.05 USD worth of BNB (10 gDAI * 0.5% fee).
Repayment Fees have been removed til further notice as per governance vote: https://snapshot.org/#/ghouldao.eth/proposal/0xee5fb0c8b081900c745d9c6452ed249487d9b82b6ca149bc607188095e809bd0

2. Deposit Fees

Deposit fees are paid by users when they submit their liquidity pool (LP) tokens to participate in liquidity mining rewards. The fee is denominated in LP tokens and is equal to 0.5% of the LP token value.
Example: A user that provided 100 USD in liquidity will pay a 0.5 USD fee (100 USD * 0.5% fee) when depositing their LP tokens on the Farm page.

3. Swap Fees

There’s a 1% fee when minting gDAI with stablecoins or redeeming stablecoins from gDAI through Swap. As a result, the price to mint 1 gDAI is ~1.01 accepted stablecoin and 1 accepted stablecoin can redeem 0.99 gDAI.
Example: A user swaps 100 USDC for gDAI on Swap. The user will receive 99 gDAI for this exchange (100 gDAI - 100 * 1% fee).

Is there an interest rate fee?

No, there is no interest rate for borrowing gDAI.

How are revenues distributed?

  • 50% of Farm Deposit Fees from Ghoul solo staking will be burned. The rest is held in Treasury.
  • 100% of Farm Deposit Fees from LP token staking remain as Protocol owned liquidity on PancakeSwap. They will not be removed/liquidated/sold.
Vaults
  • 60% of Vault Repayment fees will be sold to stablecoins and added to the Swap to increase stablecoin liquidity.
  • 40% of Vault Repayment Fees will be used to increase protocol owned liquidity on PancakeSwap. They will not be removed/liquidated/sold.
Swap
  • 20% of Swap Fees will be used for Ghoul buybacks. 50% of buybacks will be burned.
  • 70% of Swap Fees will be used to increase protocol owned liquidity on PancakeSwap. They will not be removed/liquidated/sold.
  • 10% of Swap Fees remain in the swap to continue growing liquidity here.
Updates to revenue distribution model will be ratified via GhoulX voting.

Where are revenues stored?

Repayment revenue is stored in vault 0, deposit fees are stored in the treasury, and swap fees are stored in the Swap contract.

How can I track the Protocol’s revenue?

All revenue data can be seen in the Analytics page at app.ghoul.finance/analytics. (Does not exist yet. There is an Open Bounty for anyone to create this using Dune Analytics)
In the mean time, the activities of the multisig Treasury can be viewed here at any time: https://gnosis-safe.io/app/bnb:0x439aE28C32b1962AC99F5A1c2307fea9D80D8C1E/transactions/history