Revenue and Rewards

Protocol Revenue Sources

Creek generates revenue through four main channels across the protocol ecosystem.

XAUm Redemption Fees are currently set at 0%, though governance can adjust this up to 1%. These fees get collected in XAUm tokens when users redeem, providing a potential revenue stream with minimal impact on user experience.

GUSD Stability Fees operate on a dynamic 0-20% annual rate that adjusts based on market conditions. The system applies these fees during loan repayment using the formula: (Loan Amount × Annual Rate × Days) ÷ 365. When GUSD trades below its $1.00 peg, higher fees encourage repayment and help restore price stability.

Liquidation Penalties come from liquidated collateral across all supported assets including SUI, GR, WBTC, and USDC. Each asset type gets pooled separately, with automatic collection during liquidation events. This provides liquidator incentives while generating consistent protocol revenue.

Strategy Vault Revenue Share gives Creek a 10% cut of total vault earnings. The system automatically deducts this from vault profit distributions, creating variable income that depends on vault performance and market conditions.

Revenue Distribution

The protocol processes revenue through a daily cycle at 00:00 UTC, converting all collected fees to SUI for unified distribution. Emergency processing is available for administrators during critical events.

Revenue gets allocated according to fixed percentages:

• GR Token Holders: 35% distributed via rewards contract

• GUSD LP Providers: 35% through external AMM pools

• Insurance Fund: 15% for protocol security

• Team Treasury: 15% to multi-signature address (immutable allocation)

Earning Rewards

GR holders receive their share through the StakingPoolRewards contract, which calculates proportional distribution based on holdings and configurable APR rates. Rewards are liquid with no lock-up requirements - you can claim directly through Creek's interface at any time.

Collateral providers earn through CollateralVaultRewards, with per-second calculations using Balance × APR ÷ (365 × 24 × 3600). Each asset type has different APR configurations, with higher rewards typically offered for higher-risk collateral positions.

Insurance Fund

The insurance fund operates as Creek's primary safety mechanism, funded through multiple sources. It receives 15% of daily protocol revenue, plus 100% of liquidation rewards when the protocol executes backstop liquidations. Users can also deposit SUI and USDC to earn yield while supporting protocol stability.

User deposits earn 10-25% APY based on fund utilization rates. The system clearly discloses maximum 20% principal exposure during extreme market events, with withdrawals subject to fund availability and current market conditions.

The fund activates automatically when gold price deviates more than 15% within 24 hours, during multiple oracle failures, or when governance declares emergencies. It serves as an automated backstop when normal liquidation mechanisms face insufficient coverage.

Risk Management

Creek implements conservative deployment constraints to protect both the protocol and user funds. The system limits single-event exposure to 40% of total reserves, with target reserve size scaling proportionally to protocol growth. A hard cap restricts fund size to 20% of total TVL, redirecting excess reserves to GUSD reward pools.

User protection measures prioritize depositor capital before protocol interests. During adverse scenarios, the system implements pro-rata loss sharing among all participants. Users maintain recovery rights for future surplus allocation, with real-time fund status and deployment metrics available on-chain for full transparency.

The insurance fund's utilization strategy balances conservative risk management with sufficient reserves for ongoing protocol security, providing capital for emergency liquidations and system stability during extreme market conditions.