Profit Distribution

Resolv collateral pool regularly realizes regular profits (losses) in terms of USD equivalent. The changes to the collateral pool value come from:

• Rewards from staking ETH;

• Futures funding rate income (expense).

Calculation of profits (losses)

Profits (losses) are calculated by the protocol regularly at the end of each reward epoch. Reward epoch specifications:

Epoch Duration	24 hours
Epoch Start / End Date	12:00:00 UTC

Reward distribution

Profits are distributed as follows:

Reward	Profit portion	Allocated pro rata to
Base Reward	63% (70% from 90%)	stUSR + RLP
Risk Premium	27% (30% from 90%)	RLP
Protocol Fee	10%* [Check details]	Protocol

If losses are realized during a reward epoch, such losses are allocated to RLP.

Reward distributions are reflected for stUSR/wstUSR and RLP differently:

Token
stUSR	Quantity increases (value is 1 stUSR = 1 USR at all times)
wstUSR	Value increases
RLP	Value increases (decreases)

For more details of how the distributions are made, see calculation example.