> For the complete documentation index, see [llms.txt](https://auro-finance.gitbook.io/auro-finance-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://auro-finance.gitbook.io/auro-finance-docs/introduction/dual-revenue-system.md).

# Dual Revenue System

To establish a sustainable and diversified revenue model, Auro Finance implements a Dual Revenue System, consisting of the following components:

* Direct Revenue:  \
  This is the revenue generated directly from user activities such as borrowing, converting and more.
* Asset Strategies:  \
  Deposited assets are deployed to approved DeFi strategies within other protocols like Aries, Echelon, and Hyperion, aiming to maximize returns.

**Operational Model and Collateral Management**

To ensure smooth operations, Auro Finance will utilize only a portion of the deposited collateral in asset strategies, while the remaining portion will be reserved within the protocol to maintain liquidity and security.

**Revenue Allocation**

The revenue generated from the Asset Strategies will be allocated as follows:

* A portion of revenue will be allocated to increase incentives for users of Auro Finance, promoting engagement and sustained usage of the protocol.
* The remaining revenue will be used for buyback of AURO tokens, enhancing their scarcity and driving up their value. This step helps create a foundation for long-term growth and value retention.

This dual approach ensures both the protocol's sustainability and the continual growth of its community.
