# Automatic Income Allocation

### Overview

This innovation is designed to distribute the incomes generated by Venus Protocol seamlessly, channeling them to different destinations according to specific rules and percentages. This functionality will incorporate incomes generated through various sources, including interest reserves and liquidation incentives, for both the Core pools and Isolated pools. The goal is to distribute these incomes in underlying tokens and not in vTokens, based on the latest protocol [tokenomics](https://snapshot.org/#/venus-xvs.eth/proposal/0xc9d270ccecb7b91c75b95b8d9af24fc7c20cd38c0c0c44888ed4e7724f4e7ce9).

### Key Aspects of Automatic Income Allocation

* **Near-Streaming Distribution**: The income will be distributed in a near-streaming fashion, from the different pools to the ProtocolShareReserve contract.
* **Flexible Distribution Rules**: The incomes generated by Venus Protocol will be distributed according to two schemas:
  * **Schema (PROTOCOL\_RESERVES)**: Applied specifically to income generated by the interest reserves in every Venus market.
    * 40% to Treasury
    * 20% to XVS Vault rewards
    * 20% to Venus Prime
    * 20% to Risk Fund
  * **Schema (ADDITIONAL\_REVENUE)**: Valid for liquidation and other product developments.
    * 60% to Treasury
    * 20% to XVS Vault rewards
    * 20% to Risk Fund
* **Integration with Existing Architecture**: The Automatic Income Allocation will seamlessly integrate with the existing ProtocolShareReserve contract, ensuring that the incomes are sent to their designated reserves.

### Benefits

* **Efficiency**: Automating the income distribution process allows for quicker and more accurate allocation.
* **Transparency**: All distributions are recorded on the blockchain, reinforcing Venus Protocol's commitment to clear and open practices.
* **Flexibility**: The ability to define specific rules and percentages for different destinations ensures that the distribution aligns with the community's needs and goals.

### Architecture

<figure><img src="https://1811016925-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSfxZmzf9N5T5Npv859XY%2Fuploads%2Fgit-blob-d5a5a45d69b7ff33884fba7424e54a7edc35b4c2%2Fautomatic-income-allocation.svg?alt=media" alt=""><figcaption></figcaption></figure>

*The dashed lines represent transactions initiated by external agents (VIP’s, scripts, arbitrage bots, etc.), and the solid lines represent transfers of funds.*


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