Profit Distribution
Last updated
Last updated
When ZENMEV’s AI engine executes a profitable MEV transaction, it allocates the resulting gains among all stakers in a transparent, on-chain process. This ensures that every participant receives a fair share based on their contribution to the overall liquidity pool.
Each MEV trade produces an initial return, or GrossProfit. The system then deducts gas costs and a small platform fee before arriving at the final amount available for distribution. Formally:
GrossProfit The raw return from the MEV trade, measured in the relevant zToken or underlying asset value.
GasFees These expenses reflect the cost of transaction confirmations, which can vary depending on network congestion and block competition.
PlatformFee A modest portion that covers ZENMEV’s operational, developmental, and auditing needs, ensuring continuous upgrades and reliable performance.
Once the NetGain is computed, it is distributed among stakers in proportion to their relative stake in the pool. This ratio-based method keeps the system equitable. The formula for a single distribution event is
UserStaked The quantity of zTokens held by the user, representing a fraction of the total staked assets.
TotalStaked The aggregate stake from all participants.
UserShare The slice of NetGain allocated to that user, automatically credited to their staked balance.
If an MEV trade yields a NetGain of 100 tokens, and you own 10% of the total pool, you are entitled to 10 tokens from that event. As multiple trades can occur daily, these small incremental gains may sum to a significant total.
ZENMEV applies the distribution as soon as the transaction finalizes and NetGain is calculated. This real-time approach brings several benefits:
Immediate Visibility The dashboard promptly displays the updated stake. Users can watch their balances grow throughout the day.
Auditable Logs Each distribution triggers an on-chain event, allowing stakers or third parties to confirm the exact values credited.
Potential Compounding Individuals who choose to keep rewards staked may see faster growth over time, since the new stake portion also participates in future MEV trades.
In cases where a brief lock-up period exists, NetGain still accrues to each user’s stake in real time. Even if stakers cannot fully withdraw during the lock window, they observe their share increasing on the dashboard. Upon reaching the end of the lock period, they are free to claim or unstake if they wish.
Partial or Full Claim At any point (provided the lock-up has expired), users may claim some or all of their accumulated zTokens, converting them back to the original asset.
Transaction Fees Each claim transaction may incur a nominal gas fee. Some users prefer to accumulate larger amounts before claiming to minimize repetitive fees.
Compounding Strategy Others continuously leave profits in the system to enlarge their stake, thereby securing a bigger portion of future distributions.
The system executes a front-run that nets a GrossProfit of 500 tokens.
Suppose GasFees total 50 tokens, and the PlatformFee is 20 tokens. NetGain becomes 430 tokens.
If you hold 5% of the staking pool, your share is 21.5 tokens from that single trade.
The staking contract updates your balance, and the dashboard reflects your new stake size.
Fairness Proportional rewards guarantee stakers with larger stakes benefit more, yet every participant still earns according to the same ratio.
Automated & Trustless Once the contract logic completes, no manual trigger is needed from the user to finalize the distribution.
Aligns Incentives By deducting gas costs and platform fees directly from the trade result, the system only pursues trades that offer a tangible positive return.
Profit Distribution in ZENMEV marries simplicity with transparency. As soon as MEV transactions yield net gains, each staker’s share is credited according to their stake ratio. This real-time allocation, combined with lock-up mechanics (if any) and open on-chain logging, provides a straightforward yet robust mechanism that rewards commitment and fosters ongoing confidence in the platform’s MEV-driven strategies.