# Business Model

Savvy protocol uses a two-tier business model for early self-sustainability. First tier is for revenue generation and the second one is about find utilization.

### Revenue generation

#### Protocol fee

Savvy takes a 10% fee on the yield generated by the deposited strategy. This amount is paid to the Savvy Treasury. 90% of the yield is kept in Savvy Sage AMO contracts and deducted from borrowers' open lines of credit.

#### Service fees

Planned future roadmap products such as the Savvy Launchpad, Card and Fiat On/Off Ramps will generate additional revenue on top of the Protocol Fee. These will also be transferred to the Savvy Treasury.

### Fund utilization

#### Treasury management

In addition to funding daily operations, the Savvy Treasury uses collected amounts to invest in yield strategies and execute buy-backs from the open market to decrease the amount of SVY in circulation and to generate additional income.

#### Protocol Owned Liquidity (POL)

Savvy Sage earns rewards by concentrating liquidity in svToken stableswap pools and generates additional capital from idle customer yields. Over $400,000 of POL has been generated to date.


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