LIKWID serves as the official token of the Likwid Protocol, responsible for both revenue distribution and governance functionalities.It constitutes the protocol-native token that facilitates value accrual through revenue-sharing mechanisms while enabling on-chain governance for decentralized protocol evolution
| Parameter | Value |
|---|---|
| Total LIKWID Supply | 1,000,000,000 |
The $LIKWID Token Economic Model
Introduction: A Productive, Real-Yield Asset
The $LIKWID token is the core of the Likwid Protocol's economic engine. It is designed from the ground up as a productive, real-yield asset, created to directly capture the protocol's success and distribute it to its core stakeholders.
Unlike purely speculative governance tokens, the value of $LIKWID is directly and transparently linked to the transactional volume and revenue generated by the protocol's core functions.
Core Principle: 100% Value Accrual
The fundamental principle of the $LIKWID token is simple and powerful:
100% of all protocol-level revenue is distributed to the owners of the $LIKWID token.
This model ensures that the interests of the protocol and its token holders are perfectly aligned. As the protocol grows in usage and volume, the value returned to holders grows in direct proportion.
Protocol Revenue Streams
The Likwid Protocol generates revenue from three distinct sources, representing a diversified and robust income model.
1. Swap Fee Revenue
The protocol accrues 10% of all swap fees generated from trades executed within its liquidity pools. This captures value directly from the fundamental market-making activity on the platform.
- Mechanism: When a swap occurs, a fee is charged. The protocol automatically directs 10% of this fee to its treasury before the remainder is allocated to liquidity providers.
2. Margin Fee Revenue
The protocol accrues 20% of all margin fees. These fees are collected when traders open leveraged positions, reflecting the higher value and risk associated with these advanced financial products.
- Mechanism: When a margin trade is initiated, a fee is applied. The protocol retains a 20% share of this fee, capturing value from the platform's primary leveraged trading function.
3. Realized Interest Revenue
The protocol accrues 5% of the interest paid by borrowers at the moment of repayment. This model is intentionally designed to only capture value from productive, settled debt.
- Mechanism: When a borrower repays a loan, the total interest owed is calculated. The protocol receives 5% of this collected interest. Crucially, unpaid, accrued interest does not count towards protocol revenue until it is actually paid back. This ensures that protocol earnings are based on real, realized cash flows, not just on-paper accruals.
Summary: A Direct Stake in Protocol Success
By holding $LIKWID, you are not just participating in governance; you are holding a direct, revenue-generating stake in the future of the Likwid Protocol. Every swap, every margin trade, and every loan repayment contributes to the value captured and distributed to token holders, creating a sustainable and compelling economic flywheel.