The Shroomy Protocol generates revenue through various mechanisms including interest payments, liquidation fees, and flash loan fees. This revenue is systematically distributed according to a carefully designed model that balances ecosystem sustainability with stakeholder rewards.

​
Allocation Framework

Shroomy Project implements a balanced 50/50 revenue split model:

  • 50% to Shroomy Project Treasury: Half of all protocol revenue flows directly to the treasury, ensuring long-term sustainability and funding for protocol development, ecosystem growth, and operational expenses.
  • 50% to Shroomy Project Staking Contract: The remaining half is allocated to the staking contract, which distributes rewards to protocol stakeholders who have staked their Shroomy Project tokens.

​
Native Asset Distribution

A key feature of the Shroomy Project staking model is that rewards are distributed in their original form:

  • Rewards are passed through to stakers in the same assets in which they were collected
  • For example, if the protocol generates revenue in WETH, stakers receive their proportional share in WETH
  • This applies to all supported assets, including stablecoins and other tokens