Metronome Revenue Model

Metronome Synth has multiple revenue streams including fees and liquidations. All revenue goes to the Metronome Treasury, which will be used for continued ecosystem growth and health.

Synth Balance Fee - The balance fee is a mechanism to address the risk associated with generating synthetic assets on the Synth protocol. Each synthetic asset will have its own specific balance fee based on its risk profile. This fee is an annualized fee, charged on a per-second basis, and is applied by increasing the outstanding synthetic position the user holds. This fee can be viewed on the Metronome Dashboard, by hovering your mouse over each individual synthetic asset.

Marketplace Trading Fee - The marketplace fee is charged to users when swapping synths on the Synth Marketplace. The fee for swaps is 0.25%

Liquidation Fee - User positions are assessed with a premium fee whenever liquidation occurs. This fee is split between the liquidator and the Synth Protocol. Currently, the liquidation fee is an additional 18%, of which 10% goes to liquidator and 8% to Metronome.