The Flywheel
The flywheel is the heart of Monsterion's economy: trading volume continuously funds a yield-bearing reserve for stakers, deepens locked liquidity, and pays the keepers that automate it — all through immutable on-chain rules that no one can change.
The flagship split (PYUSD Flywheel)
A portion of captured trading fees on $IONS (and any launchpad token using this module) flows into the FeeRouter, which splits it on a hardcoded, compile-time-asserted 70 / 15 / 15:
Meteora DBC / DAMM fees → FeeRouter
70% → swap to PYUSD → Kamino → harvest realized yield → RewardDistributor → stakers
15% → locked DAMM v2 liquidity
15% → permissionless keepers
| Leg | bps | % | Destination |
|---|---|---|---|
| Reserve | 7,000 | 70% | swap → PYUSD → Kamino → realized yield → stakers |
| Liquidity | 1,500 | 15% | locked DAMM v2 liquidity |
| Keeper | 1,500 | 15% | permissionless keepers / automation |
The website states it plainly: "1% volume split: 70% staking rewards, 15% locked liquidity, 15% keepers."
The non-negotiable rules
- Principal stays in Kamino. Only realized yield is ever distributed — the reserve itself is never paid out by default.
- Users never deposit PYUSD. The reserve is protocol-owned, funded entirely by fees. You only ever stake $IONS; you never hand over the reserve asset.
- Splits are hardcoded and immutable per launch. The FeeRouter's split is asserted at compile time to sum to 10,000 bps and has no admin path — it can never be changed.
- PYUSD is the only allowed swap output. No other routing is permitted.
Why it's a flywheel
more trades
│
▼
more fees captured ───► bigger PYUSD reserve ───► more yield to stakers
▲ │
│ ▼
deeper liquidity ◄──── 15% locked liquidity more reason to
+ buyback pressure hold & stake $IONS
Each turn reinforces the next: volume funds the reserve and liquidity, rewards and deepening liquidity attract holders and stakers, and staking + skin buybacks reduce sell pressure — which supports volume. The keepers keep it spinning without the team.
Variants
The same machine can hold its reserve in different assets:
- PYUSD Flywheel (flagship) — reserve in PYUSD, parked in Kamino lending.
- JupSOL Flywheel — reserve held as JupSOL (Solana staking via Sanctum); auto-compounds on-chain, and the realized yield delta above principal is harvested to stakers.
See Fee Modules for every launch type, and Staking → Weights & Rewards for exactly how harvested yield becomes a per-staker payout.
Disclaimer: rewards are variable and not guaranteed. They depend on trading volume, reserve size, market rates, and total staking participation. See the full disclaimer.