# Real Yield

**Objective and Approach**

CVI aims to closely align the yield generation with the protocol's overall success and growth. This strategy involves a dynamic distribution of esGOVI emissions among key stakeholders: stakers, liquidity providers (LPs), and traders. The distribution is structured as follows:

* **Stakers:** 60% of esGOVI emissions are allocated to those who stake their tokens in the protocol.
* **Liquidity Providers:** 20% of esGOVI emissions are dedicated to LPs who contribute to the liquidity pools.
* **Traders:** The remaining 20% of esGOVI emissions are distributed to active traders on the platform.

**Milestones and Transition to Real Yield for GOVI Stakers**

To ensure the sustainability and scalability of the yield model, CVI has established specific milestones. Real yield (in USDC) will be initiated upon achieving two out of the following four milestones:

1. **Theta Vault TVL:** Achieving a median 30-day Total Value Locked (TVL) in the Theta Vault exceeding $10 million.
2. **Trading Volume:** Reaching a median 30-day trading volume of more than $0.5 million.
3. **Yearly Fees to Staked GOVI Ratio:** Attaining a set ratio of yearly fees to staked GOVI, with the specific target ratio to be determined by community vote (options being 3%, 4%, 6%, 8%).
4. **Leveraged CVI Token and Hedging Vault Launch:** Successfully launching the leveraged CVI token ($UCVI) and integrating the Hedging Vault, with a 60-day period of active protection following the launch.

**Fee Allocation and Real Yield Reward**

Upon meeting two of the specified milestones, CVI will implement the following fee allocation strategy:

* **Growth and Development:** 15% of the collected fees will be earmarked for the continuous growth and development of the CVI platform.
* **Real Yield Rewards:** The substantial portion, amounting to 85%, will be allocated as real yield rewards to GOVI stakers.

In essence, this structured approach to yield distribution is designed to ensure that the rewards are reflective of the platform's performance and growth, fostering a sustainable ecosystem that benefits all participants.


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