Governance Treasury
Governance Treasury Receipts Overview
The Governance Treasury serves as a financial hub for a lending platform, managing the accumulation and disbursement of various fees. Below is a breakdown of the primary sources of revenue for the Treasury.
Functions of the Treasury
The Treasury not only collects fees, but it also plays an essential role in:
Maintaining the platform's liquidity.
Providing funds for platform governance activities.
Ensuring there are sufficient assets to support platform operations and growth.
By managing these funds, the Treasury contributes to the platform’s overall financial health and sustainability.
Fee Breakdown
The Treasury's main income streams include:
Protocol Fees: Generated from borrower repayments, which is vital for loan service maintenance.
Repay Grace Fee: Assessed for late repayment as a penalty to encourage timely repayment behavior.
Origination Fees: Obtained from the commencement of a new loan or from payments made during the liquidation process.
Liquidation Fees: Applied to liquidators, ensuring that the Treasury profits from the liquidation process.
Overall, the Treasury's function as a repository for these fees ensures a robust financial foundation for platform operations.
Last updated