Rewards

The term "reward" within Azuro protocol refers to the fee of the Pool's profit that is distributed to those who contribute to its operation.

Currently, there are 4 types of contributors in the Pool, each with a corresponding reward: Liquidity Providers reward, Data Providers reward, Affiliates reward, Azuro DAO reward.

Liquidity and Data Providers

For LPs and Data Providers, after the completion of each Condition, the profit or loss of the pool is multiplied by the reward rate (25% and 10% respectively) and added to the contributor reward balance.

Affiliates (Frontends)

Affiliates' (Frontends) reward is paid monthly, separately for each chain.

• Affiliate Revenue = Monthly Pool Revenue (preditctions made minus winnings) via the Affiliate address
• Spread Reward Cap = (50% of Spread)*(Prediction Size) for all predictions (aka bets) associated with the affiliate address, resolved in the calendar month
• Spread = The spread (aka vig, aka margin) for each particular bet
• Prediction size = The amount (in respective cryptocurrency) of each particular prediction

DAO

The DAO reward being a license fee for the Azuro protocol solution is calculated by deducting all other rewards from the total monthly Pool Revenue.