Concepts
Basic Concepts
Rewards

Rewards

The term "reward" within Azuro protocol refers to the percentage of the Pool's revenue (i.e. total predictions placed minus total winnings) 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 Reward=70%×Affiliate Revenue(but not higher than the Spread Reward Cap)\begin{array}{r l} \text{Affiliate Reward} &= 70\% \times \text{Affiliate Revenue} \\ &\left(\text{but not higher than the Spread Reward Cap}\right) \end{array}
  • 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 is calculated by deducting all other rewards from the total monthly Pool Revenue.

ℹ️

LPs’, Data Providers’, and the DAO’s rewards can happen to be negative. Affiliates’ rewards can be only positive or 0.