Fee Treasury
The Fee Treasury is the contract on the Hub that collects the fees generated by system activity and allocates them by code: 60% to the liquidity inventory, 20% to the programmatic buy-back and burn, 20% to the staking pool.
What it is
The Fee Treasury is the central fee collection contract of SODAX, deployed on the Hub.
It consolidates fees generated across protocol modules and applies a predefined allocation logic to those funds. It does not participate in execution, routing, or liquidity provisioning. It exists to collect and distribute the protocol fee.
What it does inside SODAX
Within SODAX, the Fee Treasury receives the protocol fee generated by activity across the system.
Once consolidated, the fee is split by code, three ways:
- 60% funds the liquidity inventory that admitted solvers draw on to fill.
- 20% funds the programmatic buy-back and burn, which permanently removes SODA from supply.
- 20% is directed to the staking pool backing xSODA.
The Fee Treasury does not actively deploy liquidity or determine routing strategies. It routes surplus value according to governance-defined parameters.
Why it exists
Cross-network execution generates fees across multiple modules and networks. Without a centralized accounting layer, that value would remain fragmented and harder to manage. The Fee Treasury exists to:
- Consolidate the protocol fee.
- Apply consistent allocation logic.
- Separate fee management from execution infrastructure.
By isolating fee routing from liquidity operations and solver logic, SODAX maintains clearer economic boundaries.
What this means for users and partners
For users, the Fee Treasury is indirect. It governs how protocol-generated value is redistributed but does not affect individual trade execution.
For builders and governance participants, it defines how the fee supports:
- Liquidity inventory growth.
- The staking pool backing xSODA.
- Supply reduction via the programmatic burn.
Component boundaries remain clear:
- The Fee Treasury allocates the fee.
- The liquidity inventory provides execution inventory.
- xSODA is the accounting representation of staked SODA and governance weight.
- The Solver coordinates execution.
- The Hub records settlement state.
The Fee Treasury manages value distribution. It does not execute trades or move liquidity for routing.