Revenue Model
How OVC Generates Protocol Revenue
OVC converts liquidation events into a recurring revenue stream for partner protocols. The economics are straightforward: liquidation fees that previously leaked to MEV bots are captured and shared between the protocol and the OVC infrastructure providers.
Revenue Split
Protocol
66% (2/3)
Receives the majority share of all captured liquidation fees
Supra + OpenBlocks.ai
33% (1/3)
Provides oracle infrastructure, indexing, and execution
This split applies to all liquidation fee revenue captured through OVC. The protocol receives its share without needing to build, operate, or maintain any of the underlying infrastructure.
Worked Example
Consider a lending protocol with the following parameters:
Total Value Locked (TVL)
$100M
Annual liquidation volume
5% of TVL
Average liquidation fee
10% of liquidated collateral
Calculation:
$100M TVL x 5% liquidation volume x 10% fee = $500K in total annual liquidation fees
With OVC's 66/33 revenue split, the protocol receives approximately $330K per year in previously uncaptured revenue.
This is a conservative estimate. During periods of high volatility, liquidation volume increases significantly, and the captured fees scale accordingly.
Why This Revenue Matters
Most DeFi protocols generate revenue through borrowing spreads, trading fees, or protocol-owned liquidity. Liquidation fees represent an entirely separate revenue category that is proportional to TVL but typically flows to external actors.
For a protocol that currently earns modest fee revenue, adding OVC-captured liquidation fees can produce a 3 to 5x increase in total protocol revenue. This revenue is recurring, scales with TVL, and requires no additional product development from the protocol team.
On SupraEVM: 100% Fee Retention
For protocols that migrate to SupraEVM, the economics improve further. On SupraEVM, AutoLiquidations are a native system-level feature. Protocols on SupraEVM retain 100% of liquidation fees with no revenue share required, since OVC operates as built-in infrastructure rather than an external service.
See The SupraEVM Advantage for details.
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