Knowledge Hub
How Azuro Works
Rewards Distribution

Reward Distribution

The term "reward" within Azuro protocol refers to the fee of the Pool's (opens in a new tab) profit that is distributed to those who contribute to its operation.

Currently, there are 4 types of contributors in the Pool, each entitled to rewards from protocol revenue: Liquidity Providers (LPs), Data Providers, Apps, and AzuroDAO.

Note that reward split percentages aren't set in stone, and may be subject to further changes if deemed necessary by AzuroDAO.

LPs 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 (20% and 10% respectively) and added to the contributor reward balance.

Apps (Frontends)

Apps' reward is paid monthly, separately for each chain.

AppReward=70%×AppRevenueSpreadRewardCap=50%×Spread×BetSize\begin{array}{c} \textit{AppReward} = 70\% \times \textit{AppRevenue} \\ \textit{SpreadRewardCap} = 50\% \times \textit{Spread} \times \textit{BetSize} \\ \end{array}
whereAppReward is not higher than SpreadRewardCap,Spread is the vig (aka margin) for each particular bet,BetSize is the amount (aka wagered cryptocurrency) of each particular bet.\begin{array}{c} \text{where} \\ \textit{AppReward} \text{ is not higher than } \textit{SpreadRewardCap}, \\ \textit{Spread} \text{ is the vig (aka margin) for each particular bet,} \\ \textit{BetSize} \text{ is the amount (aka wagered cryptocurrency) of each particular bet.} \end{array}

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.

ℹ️

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