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Automatic Income Allocation

Overview​

Automatic Income Allocation in Rheofi Protocol is designed to seamlessly distribute protocol-generated revenue across predefined destinations using transparent, rule-based logic.

This mechanism aggregates income produced from multiple sources—such as interest reserves and liquidation incentives—across both Core Pools and Isolated Pools. Revenues are distributed directly in underlying assets, rather than derivative tokens, ensuring clarity and consistency with Rheofi’s evolving tokenomics model.

By automating this process, Rheofi ensures that protocol revenues are efficiently routed to their intended reserves while maintaining full on-chain transparency.

Key Aspects of Automatic Income Allocation​

  • Near-Streaming Distribution

    Revenue is distributed in a near-continuous manner from individual pools to the Protocol Share Reserve, minimizing delays and manual intervention.

  • Flexible Distribution Rules

    Income allocation follows clearly defined schemas, allowing different revenue sources to be handled independently:

    • Schema (PROTOCOL_RESERVES)

      Applied to income generated from interest reserves across all Rheofi markets.

    • Schema (ADDITIONAL_REVENUE)

      Covers liquidation incentives and other protocol-level revenue streams.

  • Seamless Architecture Integration

    The system integrates natively with Rheofi’s Protocol Share Reserve, ensuring revenues are routed accurately and consistently without disrupting existing pool mechanics.

Benefits​

  • Efficiency

    Automating income distribution reduces operational overhead and ensures timely allocation of protocol revenues.

  • Transparency

    All revenue flows and allocations are executed on-chain, reinforcing Rheofi’s commitment to verifiable and trust-minimized financial infrastructure.

  • Flexibility

    Configurable allocation rules allow Rheofi governance to adapt distribution strategies over time as the protocol evolves.