Protocol Revenue
Sources of Protocol Revenue
Delta Money’s revenue model is built upon five distinct sources of income, each selected to deliver a diversified, risk-adjusted yield profile that supports the protocol’s long-term sustainability and capital efficiency. The allocation and weighting across these sources are actively managed in alignment with prevailing market conditions, liquidity considerations, and macroeconomic factors. The revenue stack is structured as follows, ranked by risk-adjusted return and strategic reliability:
U.S. Sovereign Debt
A portion of income is derived from allocations to U.S. Treasuries. These instruments provide stable, low-risk returns and serve as the foundational layer of the protocol’s income strategy.
Repo Markets
A portion of income is also derived from participation in secured funding markets, including U.S. and non-U.S. government bond repos. These short-term, collateralized lending agreements provide low-risk, liquid returns and support capital efficiency within the protocol’s income strategy.
Emerging Market Carry Trades
Yield is enhanced through exposure to high-interest-rate sovereign bonds in select emerging economies, with full FX risk mitigation via structured derivatives. This strategy captures favorable yield spreads while maintaining a controlled risk profile through precise maturity and duration matching.and duration matching.
Basis Arbitrage
Opportunistic yield is sourced from delta-neutral strategies in perpetual futures markets and cross-exchange basis trades. While these strategies deliver outsized returns in favorable funding environments, they are actively adjusted based on volatility, liquidity, and counterparty risk dynamics.
Yield Bearing Tokens
Delta Money deploys capital across a range of yield-generating instruments to enhance returns while maintaining liquidity and managing risk. This includes allocations to liquid, short-duration stablecoin instruments, and exposure to selected liquid staking derivatives of blockchain-native assets like ETH and SOL.
Mint & Redeem Fees
Delta Money also generates income through mint and redeem fees, set at 0.2% per transaction. These fees apply whenever users create or redeem DUSD, providing a consistent, protocol-aligned revenue stream that supports operational sustainability and contributes to the overall return profile for participants.
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