Revenue Generation

Once the pool is created, the Creator’s address receives SOL from the protocol fee, which is handled by the smart contract. This custom logic enables a new revenue model that shifts the focus from quick profits (as seen with many traditional AMM models) to sustained activity, long-term growth, and utility. The fees collected can be allocated to various DeFi applications within Solavista, such as:

• Auto-buys: A mechanism where a portion of fees is automatically used to buy back tokens, potentially increasing the token’s price floor.

• Staking Rewards: A portion of the fees collected can be distributed as rewards to users who stake their tokens, incentivizing long-term commitment and liquidity provision.

• Treasury Allocation: The fees collected can also be assigned to a treasury, which might be used for community rewards, marketing, or further protocol development.

This protocol-assigned smart contract address is a critical part of the infrastructure, as it ensures that fees are automatically and fairly distributed without human intervention. This model allows for more diverse DeFi use cases than what is possible with most current AMMs.