The protocol earns from operating revenue, not seigniorage or tokenomics tricks. Every line ties back to a primitive that is either live today or has scaffold code on chain. No bait, no hidden fee schedule.
Bonded USDC routes through Kamino + MarginFi LPs. Builders keep 50% of the gross yield, the protocol keeps 50%. Conservative routing because the bond's primary job is paying slashing claims, not maximizing APY. Roughly 2.5% net APY at current devnet oracle setting.
When the protocol arbiter rules in the user's favor, a 2% fee comes out of the bond - full fee if the ruling lands within 24 hours of escalation, half-fee if it takes longer. Fee accrues to the treasury yield bucket and routes to the pool when the underwriter pool launches.
Accept and reject paths each route a 1% fee from the bond into the treasury bucket. Built as a public-good expense (oracle, audit retainer, slashing reserve), not victim compensation. Compounds quickly under spam-rejection scenarios - 50 rejects costs the builder roughly 50% of bond.
Deeper anomaly detection, webhook delivery SLA, priority indexer queue, white-label registry. Paid by DApps that need real-time agent risk signal in their delegation flow (Drift insurance fund, Kamino managed vault, Adrastea).
The underwriter pool earns from arbiter fees and treasury distributions. The protocol keeps 30% of that flow; the remaining 70% goes to depositors as premium share. This is the primary scaling lever - pool TVL grows the addressable revenue without growing the bond market.
Three scenarios driven by bonded TVL and pool TVL. Numbers are scenarios, not forecasts. The formula sits below the table so you can sanity-check it.
| Year | Bonded TVL | Pool TVL | Bond yield | Arbiter + fees | API tier | Pool take | ARR |
|---|---|---|---|---|---|---|---|
| Y1 (2026) | $2M | $1M | $25k | $15k | $10k | $30k | $80k |
| Y2 (2027) | $10M | $10M | $125k | $60k | $50k | $300k | $535k |
| Y3 (2028) | $50M | $100M | $625k | $300k | $250k | $3.0M | $4.2M |
The full treasury allocation and yield routing strategy lives in the protocol docs.