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.