> For the complete documentation index, see [llms.txt](https://docs.paddlefi.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.paddlefi.com/paddle-battle/revenue.md).

# Revenue

Paddle Battle generates revenue through **two main sources**:

* **Gaming Fees** – Collected from wagers.
* **Supply Interest** – Earned from third-party yield platforms.

However, **the majority of these revenues are redistributed** back to **traders and $PADD stakers**, ensuring an incentivized and sustainable ecosystem.

### Gaming Fee

* **2.5% of every wager** is collected as a gaming fee.
* **Revenue Distribution:**
  * **25-75%** is redistributed as **rebates** via the [**referral system**](broken://pages/Vsed1OF28nfgMKdczieu).
  * **25%** is retained as **protocol revenue**.
  * The remainder is **distributed to $PADD stakers** as rewards.

### Supply Interest 

To maximize **capital efficiency**, Paddle integrates with **Dolomite, Aave, and other lending protocols** to generate extra yield from deposits.

* **A portion of deposits is supplied to lending protocols and yield aggregators.**
* The **% of funds allocated** is dynamically adjusted based on **market conditions and deposit/withdrawal activity**.
* **Revenue Distribution:**
  * **70%** is distributed **monthly to depositors**, proportional to their balance.
  * **20%** is distributed **monthly to $PADD stakers**.
  * **10%** is retained as **protocol revenue**.