Revenue Reinvestment and the Liquidity Flywheel
CosmBank employs a circular reinvestment model that transforms protocol revenue into deeper liquidity and stronger token value — creating a self-sustaining liquidity flywheel.
Revenue Allocation Strategy
50% of Protocol Revenues (e.g., loan interest, DEX trading fees) are used to buy back CSM on the open market.
The repurchased CSM is directly injected into DEX liquidity pools — strengthening CSM’s depth and price support.
The remaining 50% is allocated to:
Token Buy-and-Burn Programs
DAO Treasury Reserves
Strategic initiatives aligned with governance outcomes
Revenue is not just held — it is actively recycled back into the protocol’s liquidity infrastructure, enhancing market resilience and token utility.
veCSM Governance Incentives
Users who lock CSM to obtain veCSM gain governance voting rights.
veCSM holders can vote on how POL earnings are distributed — including:
Prioritizing specific liquidity pairs (e.g., CSM/BNB or CSM/USDT)
Allocating yield shares across pools
veCSM holders also receive a portion of protocol fees as additional rewards, creating a powerful incentive to commit long-term capital.
The veCSM model transforms passive governance into yield-aligned capital power — giving long-term token holders a voice and a stake in liquidity outcomes.
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