Concepts
Basic Concepts
Rewards

Rewards

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

Currently, there are three types of contributors in the Pool, each with a corresponding reward: Affiliate reward, Data Provider reward, Azuro DAO reward. The part of the profit and loss that is not distributed among these three participants remains to be allocated to the LP liquidity providers.

Azuro DAO and Data Providers have the same reward mechanism: after the completion of each Condition, the profit or loss of the pool is multiplied by the reward rate and added to the contributor reward balance. If the balance is positive and enough time has passed since the previous withdrawal, the contributor can withdraw their due reward.

The Affiliate reward mechanism differs from that of Azuro DAO and Data Providers. At the moment, in all Betting Engines, Affiliates only share in Pool's profits, but not losses. The calculation of Affiliate rewards is determined individually by each Betting Engine. For example, because profit calculation for PrematchCore Affiliates is a gas-expensive operation, in withdrawal requests, Affiliates also provide a list of Condition IDs for which they want to get their reward.

Actor% share of profitAddress
Liquidity Providers25N/A
Frontends (Affiliates)60*N/A
Data Providers100x77e803ad3a4a52d5ab609451b8ba60cea7a5bea6
Azuro DAO50xef18f2f054a7ad2909333051aa42d5c0bb3f92f6
*

In the current implementation Frontends receive a commission of 5% of the betting volume for positive conditions (i.e. conditions that generate a profit for the liquidity pool), which is distributed proportionally based on the share of pool revenue contributed by each frontend. On average, this means that frontends can expect to earn around 60% of the total revenue, however this figure may fluctuate due to the current implementation which only takes positive conditions into account and is based on percentage of volume. An update which allows for precise setting of profit distribution is planned for Q4, 2023.