💸Revenue Model

Where Does the Yield Come From?

Sprocket's sustainable yield comes from five distinct revenue streams that scale with protocol growth.

1. Origin Protocol Yield Forwarding

Primary Revenue Stream

Specifications

• Base Yield: 8-15% APR from SuperOETH rebasing rewards

• Coverage: ALL Sprocket contracts and treasury

• Distribution: Protocol-controlled yield forwarding

• Scaling: More TVL = More rewards (not diluted)

Critical Insight: Unlike traditional farms, our yield scales WITH deposits rather than being diluted by them.

2. Permissionless Rehypothecation

Secondary Revenue Stream

Integration Flow

User Deposit → Strategy Contract → Partner Protocol LP → Trading Fees → Revenue Split

Key Features

• Custom strategy contracts for automated deployment

• ICHI-style concentrated liquidity management

• Fully permissionless - no custodial risk

• Scalable revenue through sophisticated strategies

Partner Integrations

• ICHI Protocol - Concentrated liquidity management

• Aerodrome - Base's leading DEX

• Origin Protocol - Yield-bearing assets

3. Leverage/Lending Revenue

Tertiary Revenue Stream

Revenue Sources

• Funding fees from long/short positions

• Borrowing interest from users

• Open interest capacity managed by treasury size

• Revenue scaling with ecosystem adoption

Distribution

• 50% to boost user pools

• 50% to treasury growth

4. Deposit Fees

Anti-Whale Mechanism

Purpose

• Small fees on select pools

• Prevents extraction-focused behaviour

• Protects regular users from large capital dumps

Fee Structure

• Variable based on pool volatility

• Higher fees during high-demand periods

• All fees boost treasury and user yields

5. TGE Mint Revenue

One-Time Capitalisation

Structure

• 2.5% fee on all TGE mints

• Direct treasury capitalisation in ROCKET/ETH

• Immediate yield generation capability

Purpose

• Bootstrap initial treasury

• Protect against lending exploits during launch

• Ensure sustainable operations from day one

Revenue Sustainability

Why This Model Works

Revenue Stream	Scaling Factor	Sustainability
Yield Forwarding	Scales with TVL	Perpetual from rebasing
Rehypothecation	More strategies = Higher yield	Permissionless expansion
Leverage/Lending	Grows with adoption	Market demand driven
Deposit Fees	Volatility responsive	Anti-extraction protection

Result

Multiple uncorrelated revenue streams ensure consistent yields regardless of market conditions.