# Orki Finance Economic Model

## Orki Finance Economic Model with Liquidity Protocol V2 Design

#### Core Design

Orki Finance’s model is built to generate **sustainable, organic revenue** through:

* Interest from loans
* Protocol utilization
* Treasury growth

Inspired by OlympusDAO but with a differentiated approach, Orki does not bond user tokens directly.\
Instead, **15–25% of protocol revenue is bonded,** meaning interest and fees generated from loans and utilization are reinvested into **Protocol-Owned Liquidity (POL)**.

At the same time, Orki distributes **$ORKI tokens** to users as part of its equivalent revenue-sharing.

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#### Why This Matters

* **User-Friendly:** Users don’t need to bond assets to participate they earn $ORKI while the  POL grows in the background.
* **Shared Upside:** Revenue-backed POL strengthens TVL and enables buybacks.

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### Strategy

#### **Pre-TGE**

Focus: Treasury growth & TVL support

* **75%** → Stability Pool (SP) depositors, distributed proportionally by collateral demand
* **25%** → Protocol-Owned Liquidity (POL), supporting:
  * TVL expansion
  * Revenue growth via SPs and Velodrome LPs

*Note: POL acts as both a liquidity buffer and a revenue engine minimizing reliance on rented liquidity.*

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#### **Post-TGE**

Focus: Token distribution, adoption, and expansion

* **75%** → Stability Pool depositors
* **15%** → POL
* **10%** → $ORKI buybacks chest

Buybacks will help offset initial unlocks from the airdrop, while POL will scale to new chains and opportunities approved by the community.

**POL-to-FDV Dynamic Rule:**

* If Treasury > $ORKI FDV → POL stops receiving the 15% allocation
* Instead, **25%  Orki Finance revenue is redirected entirely to buybacks, switches back at parity.**

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### Comparative Model: Orki vs. Liquity

| Aspect             | Liquity                                          | Orki                                                     |
| ------------------ | ------------------------------------------------ | -------------------------------------------------------- |
| Governance Token   | Fully distributed - gov based                    | TGE - hybrid gov based                                   |
| Revenue Allocation | 25% BOLD→ Protocol Incentive Liquidity (PIL)     | 25% USDK→ Protocol-Owned Liquidity (POL)                 |
| Incentives         | PIL + Forkanomics                                | PIL + Airdrop + POL  + Buybacks                          |
| Type               | <p>Revenue based incentives<br>+ Forkanomics</p> | TGE incentives+Revenue based incentives + Buybacks + POL |
|                    |                                                  |                                                          |

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### Advantages of Orki’s Approach

* **Revenue Recycling:** Orki reinvests revenue directly into liquidity and growth strategies.
* **Flexibility:** Buybacks and liquidity deployment executed via POL less reliance on inflationary incentives and liquidity renting.
* **Long-Term Alignment:** POL revenue strengthens both treasury and token holder value.
* **Governance Input:** $xORKI holders decide monthly whether to continue, pause, or redirect allocations.
* **Secondary Support:** Buybacks provide an additional stabilizing mechanism for $ORKI and recycling for incentives due to fixed supply

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### Risks

* Certain strategies require time-sensitive execution
* Some strategies may underperform or fail
* Ongoing management and smart contract risks

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⚡ **In short:** Orki Finance is pioneering a revenue-backed, governance-driven model where liquidity, growth, and community incentives are aligned through POL and transparent allocation strategies or curators, positioning the protocol for sustainable expansion pre- and post-TGE.

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