Deployer Incentive Program
The Deployer Incentive Program empowers builders and project teams to launch new markets on Pennysia with automatic revenue sharing and long-term sustainability.
How It Works
Every market deployed on Pennysia is instantly eligible for the revenue-sharing model.
Up to 50% of protocol fees generated by that market are distributed directly to the deployer.
As the pool grows and matures, and more users contribute liquidity, the deployer’s revenue share is gradually and proportionally decreased, with the reduced portion automatically redirected to the protocol fee pool.
This ensures early deployers are rewarded for bootstrapping liquidity while maintaining fairness as the market decentralizes over time.
Mechanism
When a new liquidity pool is created — typically involving tokens that have never been launched before — the project owner or protocol team usually provides most or all of the initial liquidity.
In this case, the full 50% revenue share is granted to the deployer.
As more LPs join and total liquidity increases, the deployer’s share of fees adjusts proportionally to their share of the pool.
Example:
- If the deployer initially owns 100% of the pool, they receive the full 50% of protocol fees.
- If their ownership later decreases to 20% of total liquidity, their share correspondingly drops to 20% of that 50%, resulting in 10% of total protocol fees.
The remaining portion is automatically returned to the protocol treasury.
This mechanism ensures to benefit new projects while protecting the protocol from exploitations by bots and other frontrunners.
Purpose
This incentive aligns Pennysia’s growth with the success of its ecosystem partners. It encourages:
- Developers to create and maintain active markets.
- Projects to bootstrap liquidity without external funding.
- Communities to launch their own DeFi ecosystems sustainably.
Fee Switch
The Fee Switch is a built-in mechanism for long-term sustainability.
When activated, it temporarily pauses the Deployer Incentive Program, redirecting the deployer’s revenue share of fees back to the protocol treasury.
By default, the Fee Switch is turned off, ensuring deployers receive their full incentive. It may be activated in the future only if additional funding is needed to support Pennysia’s development, operations, or security.