Value Creation
Luxor Treasury
The Luxor Treasury is the contract in which we store the majority of the stable coins and volatile coins owned by the DAO. The treasury is used for a few main purposes, as outlined below.
Inflows
Bonding
Bonding is one of the ways in which Luxor Money generates profits. The protocol will sell bonds of other tokens like DAI for discounted LUX tokens, which will then be vested for gradual release to the bonding party. This allows full-time users to actively manage their LUX portfolio and generate significant rewards over time whilst also supporting the growth of Luxor Money by financing its liquidity and facilitating more upwards price movement.
Trading Fees
Certain features within the Luxor Ecosystem will generate fees from their use. These fees will, in part, go to the treasury.
Investment Returns
From time to time, there will be investments using the treasury funds to profit from projects on various networks. The returns from these investments are owned by the treasury.
Outflows
Investments
Whilst investments remain in the treasury, it's relevant to list them as a 'temporary outflow' since they are being converted from stable-coins (risk-free) to other coins (volatile).
Buybacks
DAO Wallet
The DAO Wallet may be considered as more of a "Warm Wallet" equivalent of the Treasury, but owned and operated entirely by the team. Where the Treasury is meant for the long-term storage of coins, the DAO Wallet is used for expenses like Marketing and Development Funds.
Inflows
Profits from Sub-Projects
Subprojects is the name given to the use-cases we are developing at Luxor Money. The profit from these subprojects will be stored in the DAO Wallet. This inflow is used to incentivize onboarding more developers to focus on profit-generating sub-projects.
Outflows
DAO Wallet outflows consists of:
Marketing Funds
Development Funds
Salary Funds
Last updated