Revenue Model

FaaSFi generates revenue through three primary verticals, creating a diversified cash flow that is resilient to market cycles.

This is the primary revenue engine for the protocol.

Mechanism: When a corporate client requests a quote for a "Supply Chain Disruption" policy, FaaSFi calculates the raw market probability.
- Raw Odds: 20% probability (implied cost $200,000 for $1M coverage).
- Client Quote: FaaSFi adds a "Safety Spread" and "Service Fee" (e.g., 22% implied cost).
- Client Pays: $220,000.
- Hedging Cost: $200,000 (executed on Polymarket/Kalshi).
Net Revenue: The $20,000 difference is protocol revenue. This model is similar to how consumer insurance companies operate, but with automated hedging.

Due to regulatory walls, prices often diverge between US regulated markets (Kalshi) and global offshore markets (Polymarket).

Scenario: Kalshi traders (US based) are bearish on an event (40% odds), while Polymarket traders are bullish (45% odds).
Action: The FaaSFi arbitrage bot buys "Yes" on Kalshi and sells "Yes" (or buys "No") on Polymarket.
Result: The protocol locks in a risk free profit equal to the spread minus trading fees. This revenue is strictly additive and requires no capital from the client.

Routing Fees: For retail traders using the FaaSFi Terminal to trade, a small convenience fee (e.g., 0.1%) is applied to smart routed orders that save the user money on slippage.
Futarchy-as-a-Service (Licensing): DAOs that integrate the FaaSFi Futarchy Widget into their governance portals pay a SaaS fee (in their native tokens or USDC) to access the FaaSFi oracle and settlement infrastructure.

The protocol revenue is distributed as follows (subject to DAO adjustment):

Last updated 4 hours ago