Protocol revenues

Algem protocol revenues come from two different sources:
  • Fees. In return for its services, Algem charges a small fee for its various features:
    • Liquid Staking management fee (10% fee on staking reward)
    • Immediate unstaking fee (1% on the unstaking amount)
    • Liquid Lending management fee (10% fee on lending reward)
    • nASTR Liquidity hub fee (10% fee on partner's farming reward)
  • Build2Earn reward. Algem is part of the Astar Builders program. As a result, Algem generates operator rewards from Astar dApp Staking during each Astar era through its pool on the Astar portal. Users can follow the reward distribution on Subscan.
Additionally Algem charges a micro fee from the staking reward by cutting the rewards after the second decimal (for example: 5.863145 → 5.86). These tokens are accumulated in the staking rewards pool and can be used as a reserve in case of potential insolvency of the LiquidStaking smart-contract. These tokens can't be used by the team. This fee will be eliminated after the adapter smart-contract launch.

Revenue distribution

Before the Liquid Lending launch (current stage)

After the Liquid Lending launch

  • 70% of the whole revenue goes to the ALGM stakers as a reward;
  • 20% of the whole revenue goes to the team;
  • 10% of the whole revenue goes to the immediate unstaking pool.