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description: xDERP protocol earnings distribution
---

# Earnings sharing

Shares of protocol earnings are distributed as indicated below:

1. Stablecoin pairs
2. Other cryptocurrencies

## Stablecoin pairs

In order to capture the market shares of trading volume on zkSync for stablecoins, DerpDEX has implemented these tokens to have <mark style="background-color:yellow;">**100% fees for LP only and 0% protocol fees**</mark>. The benefits are, liquidity providers for stablecoins will get 100% of the trading fees generated.&#x20;

1. USDT [https://www.coingecko.com/en/coins/tether](https://www.coingecko.com/en/coins/tether)
2. USDC [https://www.coingecko.com/en/coins/usd-coin](https://www.coingecko.com/en/coins/usd-coin)
3. BUSD [https://www.coingecko.com/en/coins/binance-usd](https://www.coingecko.com/en/coins/binance-usd)
4. TUSD [https://www.coingecko.com/en/coins/true-usd](https://www.coingecko.com/en/coins/true-usd)
5. DAI [https://www.coingecko.com/en/coins/dai](https://www.coingecko.com/en/coins/dai)
6. crvUSD [https://www.coingecko.com/en/coins/crvusd](https://www.coingecko.com/en/coins/crvusd)
7. FRAX [https://www.coingecko.com/en/coins/frax](https://www.coingecko.com/en/coins/frax)
8. MIM [https://www.coingecko.com/en/coins/magic-internet-money](https://www.coingecko.com/en/coins/magic-internet-money)
9. LUSD [https://www.coingecko.com/en/coins/liquity-usd](https://www.coingecko.com/en/coins/liquity-usd)
10. USD+ [https://www.coingecko.com/en/coins/overnight-fi-usdplus](https://www.coingecko.com/en/coins/overnight-fi-usdplus)

## Other cryptocurrencies

DerpDEX would direct the trading fees (non-stablecoins) distribution proportionally to all the stakeholders.

* 50% will be distributed to liquidity provider (LP)
* 40% to Derp DAO distribution (allocation % will be updated depending on the stage of protocol). For more information, see below:
  * 30% for DERP buyback and burn
  * 10% for cash-back for traders in stablecoins&#x20;
  * 0% for protocol earnings distribution for xDERP
* 10% for ops, tech, marketing & PR, BD and community management

<figure><img src="https://3050206827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYiUQ0TCTeU3ZWoBCdNEi%2Fuploads%2Fc3b74f5Kca4KshFqv40O%2FScreenshot%202023-06-22%20at%204.08.52%20PM.png?alt=media&#x26;token=044dd01c-451b-45be-a1d0-1c68ecb60693" alt=""><figcaption><p>xDERP protocol earnings distribution</p></figcaption></figure>

Protocol earnings for Derp DAO allocation would be updated regularly depending on the stage and progress of the protocol profitability.

1. DERP buyback and burn
2. Cash-back for traders in stablecoins
3. Protocol earnings distribution for xDERP

**Phase 1: Early phase**

1. 30% for DERP buyback and burn
2. 10% for cash-back for traders in stablecoins
3. 0% for protocol earnings distribution for xDERP

**Phase 2: Product market fit** (_to be updated_)

* 20% for DERP buyback and burn
* 10% for cash-back for traders in stablecoins
* 10% for protocol earnings distribution for xDERP

**Phase 3: Scale and conquer** (_to be updated_)

* 10% for DERP buyback and burn
* 10% for cash-back for traders in stablecoins
* 20% for protocol earnings distribution for xDERP
