🍰How the Yield Is Allocated

Revenue inside The Fedz follows a clear priority, not fixed percentages.

1. System Stability Comes First

Before any yield is distributed, the system must:

  • maintain the $FUSD peg

  • honor redemptions

  • keep markets liquid

  • absorb stress events

Survival comes before distribution.


2. Long-Term Stakeholders Are Compensated

After obligations are met, surplus flows to long-term stakeholders, primarily The Fedz NFT holders.

NFT holders take on:

  • long-term commitment

  • illiquidity

  • exposure to systemic risk

They are compensated because they stay when others can’t.

This is an equity-like residual claim, not a guaranteed return.


3. Active Participants Are Paid for Activity

Liquidity providers and other contributors are compensated:

  • for providing liquidity,

  • for participating in markets,

  • for supporting system operation.

These rewards depend on usage and conditions.


Summary

  • Yield comes from operating fundamental markets

  • Users pay by trading and holding

  • Stability and liquidity are the products

  • Bank-run risk is the core cost

  • Capital efficiency amplifies revenue

  • Yield is distributed only after survival

In The Fedz, yield is earned by building and sustaining markets.

Last updated