Where the Fees Go
Trading Fees
| Fee | Rate |
|---|---|
| Buy fee | 0.3% |
| Sell fee | 0.3% |
| → XCEL+ stakers | 80% |
| → Treasury | 20% |
Stablecoin Lending Yield
| Recipient | Share |
|---|---|
| XCEL+ stakers | 80–90% |
| Treasury | 10–20% |
The treasury's share of lending yield varies between 10–20% depending on market conditions — generous in bull markets when yields are high, slightly tighter when rates compress.
Borrowing Fees
| Recipient | Share |
|---|---|
| XCEL+ stakers | 100% |
| Treasury | 0% (treasury takes no cut) |
XRT Emissions
See XRT — Perpetual Call Options for the full emission distribution and inflation mechanics.
Revenue Summary
The protocol has three distinct revenue streams that don't depend on each other:
- Lending yield — from USDC deployed into external lending markets
- Swap fees — from every XCEL buy and sell
- Borrow fees — from every xlUSD loan originated
If lending rates compress in a bear market, swap and borrow activity might actually increase, partially offsetting the decline. The protocol earns through every market condition.
Treasury Usage
Treasury funds are used to:
- Build protocol-owned liquidity — deep xlUSD/USDC swap pools
- Buy back xlUSD — keeping capital inside the system
- Strengthen market depth — ensuring smooth trading
- Fund protocol development — audits, infrastructure, operations
- Make external investments — growing the treasury strategically
The treasury is funded entirely by protocol revenue — no token dumps, no VC runway. XCEL Labs is genuinely profitable from day one of meaningful volume.
Why This Model Is Different
Most DeFi teams survive by selling tokens to fund operations. XCEL's treasury takes a minority cut of real protocol revenue, meaning the team never needs to sell XCEL to fund development. Incentives stay aligned between team and holders.