Revenue Model

You may find a visual representation of Umoja’s revenue flows below:

Additionally, you may find a description of Umoja’s revenue model below:

Model	Description
Synth Fees	Umoja's revenue model is reliant on charging a fee for minting each Synth (50% of which is redirected to the Insurance Pool) and generating a yield on excess user collateral. 80% of Premium Fee revenues are re-distributed to Stakers and LPs. 20% of Premium Fee revenues are deposited into the protocol’s Treasury. 60% of stakeholder re-distributed revenues go to Stakers, whereas the other 40% of re-distributed revenues go to LPs.
Insurance Fee	50% of Synth Fees go to the Insurance Pool to further protect the protocol from a black swan event. All Insurance Fee revenues are deposited into the Insurance Pool to further protect the protocol from a Black Swan event.
Investment Pool: Excess Collateral Revenue	Umoja invests 40% of excess collateral into other protocols, such as Yearn, to generate passive yield. 30% of the investment revenue is deposited into the protocol’s Treasury, 50% of investment revenues is deposited into the protocol’s Insurance Pool, and the remaining 20% is re-distributed to veUMJA holders.
veUMJA Stakers (Token Rewards)	veUMJA holders who have staked their UMJA tokens with uUSD in an 80/20 ratio will earn a proportion of protocol investment revenue and UMJA token rewards in proportion to the value and time they have staked. 50 Million UMJA from the Treasury will be reserved for veUMJA staking rewards (in addition to the 20% of investment revenue earned by the Investment Pool).
Early un-Stake Fee	If a staker withdraws their stake from the Governance Pol early, they will face a 1% penalty fee, which will be distributed to the protocol’s treasury. 100% of the 1% early un-stake fee goes to the protocol treasury.

Model

Description

Synth Fees

Umoja's revenue model is reliant on charging a fee for minting each Synth (50% of which is redirected to the Insurance Pool) and generating a yield on excess user collateral. 80% of Premium Fee revenues are re-distributed to Stakers and LPs. 20% of Premium Fee revenues are deposited into the protocol’s Treasury. 60% of stakeholder re-distributed revenues go to Stakers, whereas the other 40% of re-distributed revenues go to LPs.

Insurance Fee

50% of Synth Fees go to the Insurance Pool to further protect the protocol from a black swan event. All Insurance Fee revenues are deposited into the Insurance Pool to further protect the protocol from a Black Swan event.

Investment Pool: Excess Collateral Revenue

Umoja invests 40% of excess collateral into other protocols, such as Yearn, to generate passive yield. 30% of the investment revenue is deposited into the protocol’s Treasury, 50% of investment revenues is deposited into the protocol’s Insurance Pool, and the remaining 20% is re-distributed to veUMJA holders.

veUMJA Stakers (Token Rewards)

veUMJA holders who have staked their UMJA tokens with uUSD in an 80/20 ratio will earn a proportion of protocol investment revenue and UMJA token rewards in proportion to the value and time they have staked. 50 Million UMJA from the Treasury will be reserved for veUMJA staking rewards (in addition to the 20% of investment revenue earned by the Investment Pool).

Early un-Stake Fee

If a staker withdraws their stake from the Governance Pol early, they will face a 1% penalty fee, which will be distributed to the protocol’s treasury. 100% of the 1% early un-stake fee goes to the protocol treasury.

Fees. Currently, the Umoja fee is 1/2 of the spread on Deribit for ETH and BTC and 2x the spread on Deribit for every other asset. This will constantly iterate up until V1, where the community will then decide.

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Last updated 1 day ago