Earn Yield

Providing Liquidity as an SLP (Sypher Liquidity Pool)

45% of all protocol revenue in Sypher Finance is allocated to the SLP pool. The SLP acts as the counterparty to traders on the platform, meaning liquidity providers (LPs) are exposed to the Profit & Loss (PnL) of traders. This allows LPs to earn yield, but it also exposes them to the inherent risks of leveraged trading and market fluctuations.

For further details, please refer to What is SLP

Sypher DAO

50% of all protocol revenue generated by Sypher Finance is allocated to the Sypher DAO. This decentralized autonomous organization provides governance rights to token holders, allowing them to influence key decisions within the ecosystem. By participating in the DAO, holders can vote on matters such as protocol upgrades, fee structures, and treasury management, ensuring that the community has a voice in the development and direction of the platform.

For further details, please refer to SYPHER DAO

Sypher Finance Development Reserve

At Sypher Finance, 5% of all protocol revenue is allocated to the Sypher Development Fund. This fund is dedicated to supporting the ongoing growth and improvement of the platform, including new feature development, security upgrades, and ecosystem expansion.

For further details, please refer to Protocol Revenue

Fee Distribution

The revenue collected from fees at Sypher Finance is distributed in a structured manner as follows:

• SLP Fees: 45%

• DAO Treasury: 50%

• Reserved for Development: 5%

This distribution model ensures that a significant portion of the revenue is allocated to liquidity providers (through SLP fees) and the DAO Treasury, which supports governance and community initiatives, while a smaller portion is reserved for ongoing development efforts. This structure promotes a balanced ecosystem that incentivizes participation and ensures the platform's sustainability.

For further details, please refer to Protocol Fee Structure

This model ensures a fair and transparent allocation of revenues, incentivizing participants to contribute to the ecosystem while fostering sustainable development and growth. By prioritizing both liquidity providers and the DAO Treasury, Sypher Finance creates a balanced environment that supports community engagement and long-term viability. This strategic approach not only enhances user trust but also encourages ongoing participation in governance and development activities, which are vital for the platform's success.