Revenue Allocation

Revenue generated by Tren Finance are primarily allocated into the following streams:

  • TREN Token Burns

  • veTren

  • TREN LP Stakers

  • trenUSD LP Stakers

  • Stability Pool

Revenue allocation requires a balance of protocol safety and value accrual for TREN. If not enough revenue is allocated to incentivize trenUSD LP stakers and the Stability Pool, protocol safety will suffer. If too much revenue is allocated to protocol safety, then value accrual for TREN will not be as strong as desired.

Tren Finance will algorithmically determine which of the streams aboverequire higher incentivization, and allocate more revenue flow towards those streams. For example, if trenUSD liquidity is not at desired levels, more revenue will be allocated to trenUSD LP stakers to incentivize users to provide liquidity to trenUSD. Once overall protocol safety levels are sufficient, a higher portion of revenue will be allocated towards Tren Finance's native value accrual token, TREN. Aside from additional revenue allocated to veTREN holders and TREN LP stakers, the protocol will also conduct ongoin buybacks of TREN and burn the TREN supply that has been bought using protocol revenue. This will ensure that TREN is a long-term deflationary asset.

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