Yield Distribution and Compounding
4. Yield Distribution and Compounding
Following the harvest process, the realized returns are stored in the Treasury, while the Curator executes their structured distribution. This step ensures protocol sustainability, reinforces principal protection, and delivers user rewards in alignment with Prime Vault’s unified yield model.
Yield stored in the Treasury will be distributed as follows:
15% Management Fee: A portion of the harvested returns is transferred to the protocol treasury as a management fee, supporting system maintenance, operations, and long-term sustainability.
10-20% Allocation to the IL Reserve Fund: A portion of yield is allocated to the IL Reserve Fund based on the Protocol Health Index (HI), strengthening the system’s ability to offset LP-related volatility and preserve user principal across strategies.
Distribute reward to Distributor: The Treasury transfers the required amount of reward liabilities to the Distributor for user distribution.
Reward claims are processed through the Distributor, and users may initiate claims at any time.
Last updated