> For the complete documentation index, see [llms.txt](https://doc.outrun.build/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.outrun.build/ecosystem-how-the-modules-work-together/business-model.md). # Business model ## Value proposition Outrun serves two needs within a single closed loop: * **Yield-bearing asset holders**: they want a unified, liquid, cross-chain stablecoin (uAsset), and they want their assets to keep growing in value. * **Memecoin communities**: they want a fair, rug-resistant launchpad that builds lasting value, not a zero-sum casino. Within Outrun, the two needs meet through uAsset. OutStake supplies uAsset; Memeverse creates its uses and its activity. ## Revenue streams Outrun's revenue comes from real economic activity inside the ecosystem, not from token-emission subsidies: | Revenue stream | Description | | ------------------------------- | ------------------------------------------------------------------------------------------------------------------------------ | | **Trading fees (protocol fee)** | The protocol fee on every Memeverse trading fee, including dynamic fees, pool-opening decay fees, and Preorder settlement fees | | **Leveraged Genesis interest** | The uAsset interest paid by leverage participants, which accrues to the protocol treasury at Genesis lock | There is also the **settlement reserve** (not revenue): it is funded from liquidity deployment balances and covers leverage settlement shortfalls; whatever goes unused stays in reserve and never enters a treasury. Key characteristic: **revenue is positively correlated with ecosystem activity** — the more trading and the more leverage, the higher the revenue, moving in the same direction as the flywheel. ## Don't mix up the three treasuries Outrun has three distinct pools of funds, each with different beneficiaries. Don't conflate them: | Treasury | Source of funds | Beneficiary / controller | | ------------------------------- | -------------------------------------- | -------------------------------------------------- | | **Memecoin staking YieldVault** | Trading fees denominated in Memecoin | Memecoin stakers (share price appreciation) | | **DAO treasury** | Trading fees denominated in uAsset | The community (spending decided by proposal votes) | | **Protocol treasury** | uAsset interest from leveraged Genesis | Kept by the protocol (not community-governed) | **Note**: interest from leveraged Genesis goes to the **protocol treasury**, not to the Memeverse community's DAO treasury. The two are separate pools with separate controllers. All of these proceeds are distributed inside Memeverse and **never flow back to OutStake participants** (OutStake participants earn yield on their collateral exposure plus USR savings interest; see the [growth flywheel](/ecosystem-how-the-modules-work-together/flywheel.md)). ## Where a single payment goes (the core) This is the key to understanding Outrun's economic model. A single Memecoin trading fee splits along **two orthogonal dimensions**: **Dimension 1: the split between LPs and the protocol** (a percentage split of the fee) * LPs take 65%, the protocol takes 35%. * If a referrer is involved, the referral rebate is carved out of the protocol's 35% (by default equal to 10% of the total fee), leaving the protocol treasury with about 25%. **Dimension 2: routing by denomination** (where the protocol's share goes depends on which token the fee is denominated in) * **uAsset-denominated** → the DAO treasury. Within this, 0.25% of the primary pool's uAsset fees (the current default) goes to the executor who triggers distribution, as the executor reward. * **Memecoin-denominated** → the Memecoin staking YieldVault (for stakers) * **POL-denominated** → burned directly (deflationary) Stack the two dimensions and you have the complete journey of one fee: ![Where a trading fee goes](https://4075251872-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMOFYwgsYATQ3WIKQsdho%2Fuploads%2Fgit-blob-a3e01615249dc2cf7933b9661cb8a673bb027e2e%2Ffee-split.svg?alt=media) One more detail: * During the Locked phase, part of the protocol fee on the auxiliary pools (POL/uAsset, PT/uAsset, PT/POL) is also shared with **standard Genesis participants** (pro rata by share); the rest goes to the DAO treasury. ## Where the revenue goes * **Flowing back to Memeverse participants**: staker yield (Memecoin fees), the standard Genesis share (auxiliary-pool fees), DAO epoch rewards (uAsset fees), and referral rebates, keeping the ecosystem attractive to participants over time. * **Retained by the protocol**: treasury reserves, ongoing development, and a risk buffer. Returning most of the revenue to ecosystem participants is the economic foundation that lets Memeverse's internal flywheel reinforce itself. ## Key resources * **uAsset liquidity**: the bedrock of the entire ecosystem. The deeper the liquidity, the better every feature works. * **Multi-protocol adapters**: the variety of yield-bearing assets OutStake integrates determines how wide uAsset supply can reach. * **Memecoin communities**: activity in Memeverse drives uAsset consumption and yield production. * **Mechanism safety**: guardrails such as dynamic fees, lock-ups, and the settlement reserve are what trust is built on. ## Customers and participants By risk appetite there are three tiers. **Conservative**: stake on OutStake to mint uAsset, plus standard Genesis; after a successful unlock, exit fully within the 24-hour protection window, with uAsset principal conserved. **Balanced**: leveraged Genesis plus Preorder, with interest as the only cost. **Co-build**: buy and stake Memecoin, take part in DAO governance, and participate deeply as a co-builder. There are also specialized roles such as launchers, LPs, and executors. See [participation modes and risk appetite](/ecosystem-how-the-modules-work-together/playbooks.md). ## Sustainability Traditional DeFi often attracts liquidity with token-emission subsidies, which cannot last. Outrun's revenue comes from real trading and leverage activity, and most of it flows back to ecosystem participants, forming a positive loop. As long as the ecosystem is running, revenue keeps coming; the more prosperous the ecosystem, the more revenue. The business model and the growth flywheel point the same way. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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