> For the complete documentation index, see [llms.txt](https://lucia-protocol.gitbook.io/lucia-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lucia-protocol.gitbook.io/lucia-protocol/plots.md).

# Plots

A cornerstone of the Lucia Protocol’s architecture is the "Plot", which serves as the aggregation point for multiple revenue streams generated within the platform. These revenue streams include but are not limited to merchant processing fees, outstanding balance rates, repay balance rewards, insurance premiums, insurance administration fees, loan liquidations, flash loans, discount swaps, and bonds.

**Revenue Distribution**

Prior to allocation into the Plot, a nominal 1% oracle maintenance fee is deducted from the total revenue generated. The remaining 99% is then channeled into the Plot, earmarked for distribution among stLCI holders.

The total revenue *R* generated is first subjected to a 1% oracle maintenance fee *O*:

<figure><img src="/files/DqarBToPoKMfgze6doLc" alt=""><figcaption></figcaption></figure>

The remaining *R* - *O* is then channeled into the Plot:&#x20;

<figure><img src="/files/MjEhwBs1XDk5wX4QjDnb" alt=""><figcaption></figcaption></figure>

When a user stakes LUCI tokens, they are issued stLUCI tokens which represent a claim on the Plot revenue. Let *T* be the total number of stLCI tokens and t be the number of stLUCI tokens held by a user. The user's share *S* of the Plot revenue would be:

<figure><img src="/files/jB2mUDme5yrEwMi1zS1j" alt=""><figcaption></figcaption></figure>

**Ensuring Platform Health**

The Lucia Protocol introduces a myriad of innovative features designed to address limitations associated with traditional stablecoin platforms:

1. **Low Collateralized Ratio (LCR):** The LCR allows for better capital efficiency. It is defined as the ratio of the total borrowed amount B to the total collateral C:

<figure><img src="/files/4DWeHC665i7rQuJsciK8" alt=""><figcaption></figcaption></figure>

2. **Robust Price Floor and Ceiling:** The Plot mechanism also maintains a robust price floor and ceiling for tokens by dynamic adjustments. If P is the current token price, F is the floor, and C is the ceiling, then:&#x20;

<figure><img src="/files/8H4j4gWkXa1zx5qTeYLv" alt=""><figcaption></figcaption></figure>

3. **Algorithmic Monetary Policy:** The protocol uses various algorithms to adjust parameters like interest rates r and minting/burning rates m based on prevailing conditions:

<figure><img src="/files/vMd74WNmekJFW47Y2mTJ" alt=""><figcaption></figcaption></figure>

This mechanism enables the protocol to adapt and maintain stability in different market conditions.

**Example**

Assume that total revenue *R* is 10,000 LUCI, the oracle fee is 1%, and a user holds 100 stLCI out of a total 1,000 stLCI.

1. Oracle Maintenance Fee *O*:

<figure><img src="/files/bbe5kZ27RGIMz05pnDaw" alt=""><figcaption></figcaption></figure>

2. Plot Revenue:

<figure><img src="/files/6bWmahRlTbh0Mj3WobzC" alt=""><figcaption></figcaption></figure>

3. User Share *S*:

<figure><img src="/files/rnwrA9i0gNqSd0CeWFI5" alt=""><figcaption></figcaption></figure>


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