> For the complete documentation index, see [llms.txt](https://docs.layerbank.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.layerbank.finance/~/changes/tWZBbiGA1yVECZvdr6Tc/protocol/protocol-fees-revenues.md).

# Protocol Fees (Revenues)

<figure><img src="https://342097286-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fvi5sScuffF7lLX6pHEo5%2Fuploads%2FTBhMhVgGXXqsqTxqKMIh%2Fimage.png?alt=media&amp;token=c3be9b7a-10d9-43e6-a893-82b78e74faa4" alt=""><figcaption></figcaption></figure>

LayerBank is a lending protocol that derives its main revenue from the interest paid by borrowers.

**Protocol revenue sources:**

* Borrower's interest fees
* Liquidation penalty fees
* Fees for claiming platform revenue share

LayerBank plans to distribute protocol revenue, excluding supplier yield, as follows:

* 10% to LAB stakers (distributed weekly by buying back LAB tokens from the market)
* 50% to LAB - LP liquidity provision
* 30% to DAO
* 10% to reserves (treasury, insurance fund)

Additionally, when $LAB stakers claim their share of platform revenue (e.g., Ethereum, USDC, etc.), a 5% fee is charged. This fee is designed to permanently reduce the supply of LAB, driving long-term value appreciation. As LayerBank grows, the value of $LAB is expected to increase, which in turn enhances liquidity and contributes to the overall sustainability of the protocol.