Reserves in.
Bond buyers supply external assets for a fixed, vesting token allocation.
A treasury.
A return path.
Grove connects treasury reserves, protocol-owned liquidity and fee sharing. Bonding adds capital. Collected trading fees, after costs and reserves, fund the return path.
Explore fee allocation and bond scenarios in the dashboard.
How Grove works
The approach in the whitepaper ↗Liquidity owned.
The treasury funds an approved position within a published exposure cap.
Fees collected.
Costs, losses and reserve needs are settled before any distribution.
Value returned.
Net income is split between participants, treasury and liquidity.
Growth needs
an income source.
The return path starts with trading activity in protocol-owned liquidity.
Reserves provide capital. Actual fee collections provide income. A larger treasury alone does not create a return for stakers.
When income covers costs and reserves, the proposed split sends half of the net result to eligible stakers. The rest supports treasury resilience and liquidity.
Whitepaper: where fees come fromCollected fees10,000
Costs & losses−3,000
Reserve top-up−1,000
Net result6,000
Stakers / 50%3,000
Treasury / 30%1,800
Liquidity / 20%1,200
Accounting units, not live results. Proposed percentages apply only after the settlement gates pass.
More reserves.
Visible dilution.
A bond commits new tokens. Every quote should show what changes for both the buyer and existing holders.
14-day linear vesting
A proposed purchase exchanges an approved asset for a fixed token amount. A discount compensates for risk; it cannot promise a profitable exit.
Two hard issuance gates
Adjusted backing per token must not decline, and commitments must fit the proposed 2% rolling issuance cap. Neither gate guarantees token price.
Stake for the fee pool.
Read the terms first.
Weight follows time.
Active token-seconds determine each participant’s share. New stake begins at the next epoch; exit requests stop future weight.
Principal and income stay separate.
A non-rebasing receipt tracks staked tokens. Funded fee claims are recorded in the settlement asset.
Some epochs pay nothing.
Low fees, losses or missing reserve coverage pause new allocations. A seven-day exit cooldown is part of the proposed policy.
Capital is not income.
| Activity | Accounting treatment | Fee pool? |
|---|---|---|
| Bond deposit | Contributed reserve capital | No |
| Collected external swap fees | Eligible income, net of settlement | After costs & gates |
| New token issuance | Supply commitment | No |
| Unrealized asset gains | Inventory valuation | No |
| Existing funded rewards | Segregated claim liability | Already reserved |
Adjusted backing excludes Grove’s own token value. It is an accounting measure, not a redemption promise.