Practical Example

Imagine Seablocks deposits $10 million worth of USDC and USDT into a high-volume stablecoin liquidity pool on a leading DEX. Traders swapping between these stablecoins pay a small transaction fee, which is distributed proportionally among liquidity providers, including Seablocks.

For example, if the DEX charges a 0.03% fee per trade and processes $1 billion in stablecoin swaps daily, the liquidity pool would generate $300,000 in daily fees. Assuming Seablocks holds a 5% share of the pool, it would earn $15,000 in daily rewards, further augmented by additional incentives such as governance token distributions or staking rewards offered by the DEX.

By strategically allocating assets across multiple top-tier DEXs, Seablocks ensures consistent yield while mitigating risks associated with individual platforms. This liquidity provision strategy offers a complementary revenue stream that diversifies the protocol’s income sources while supporting the broader decentralized finance ecosystem.