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Treasury Management

Protocol Revenue

Poolshark's revenue comes from users exercising call options and redeeming FIN tokens at a discounted rate.

Poolshark discounts FIN for oFIN holders at a % discount compared to the market price of FIN. The % discount is based on demand and redeem percentage.

Suppose Alice owns 1 oFIN token and intends to redeem it for 1 FIN token.

The market price of FIN is $10, and the discount is 50% for oFIN redemption.

Alice is then able to receive 1 FIN at $5 per 1 oFIN. Alice then sells her 1 FIN for $10.

The end result is a 50:50 revenue split between the Poolshark DAO and Alice.

Where does the Protocol Revenue go?

The protocol treasury receives all the protocol revenue. The DAO will create and vote on proposals to dictate how the income is distributed. There are multiple avenues to which the protocol will be streamed, which overall will make Poolshark a better product.

Ecosystem Fund

Poolshark will have xx% of FIN tokens allocated to the ecosystem fund. This entails the platform's growth utilizing the FIN token itself. The Poolshark DAO also governs the FIN issued to the ecosystem fund.

Here are some examples of how the Protocol Revenue and Ecosystem Fund could be utilized towards:

Grants for External Developers: Offering grants to external developers to build on top of the protocol can encourage innovation and diversification of services offered within the ecosystem.

Liquidity Provision: The DAO can increase the rewards for providing liquidity to selected pools within the protocol. Which will help in reducing slippage, improving trade efficiency, and attracting more users.

Marketing: Investing in marketing initiatives to increase the protocol’s visibility and user base.

Partnerships: if Poolshark were to partner with a protocol, the DAO can dictate whether that pair will receive additional rewards to incentivize that pair to have higher liquidity.

Referral Programs: a user reward program could be implemented to encourage more users to join and use the DApp. Rewards could be given out in any token of the DAO's choosing.

Trading Incentivization: a determined amount of fees from the protocol treasury can be directed toward users who are swapping. This would incentivize users to utilize the dApp beyond just providing liquidity and staking FIN.