> For the complete documentation index, see [llms.txt](https://docs.btcd.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.btcd.fi/token-overviews-1/btcd/sources-of-revenue.md).

# Sources of Revenue

BTCD generates protocol revenue from three primary sources:

* Funding & Basis Spread - Earnings from the perpetual short positions, capturing the excess funding rates or basis between spot and futures.
* Liquid-Staking Rewards - Yield earned by staking BTC via liquid-staking protocols, accruing consensus layer rewards.
* Stablecoin and/or Bitcoin Yield - Interest on any stablecoins (e.g., USDC, USDT) or Bitcoin derivatives (e.g., tBTC, WBTC, LBTC) lent as supply in on-chain money markets.

These revenue streams are floating by nature—funding rates and staking rewards fluctuate with market conditions. A dedicated Reserve Fund can absorb shortfalls if funding costs temporarily exceed staking yields.

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