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

# Protocol Treasury

The Protocol Treasury holds protocol revenue for uses that support JPY DeFi. Its share of borrowing interest and upfront fees is collected at a dedicated treasury recipient; the split is described in [Interest, Fees and Liquidation Collateral](/jpy-defi/stability-pool/yield-sources.md).

## Potential uses

Governance may allocate treasury funds to purposes such as:

* Additional rewards for Stability Pool depositors
* Referral programs
* DEX liquidity incentives, known as Protocol Incentivized Liquidity (PIL)
* Donations to the JPYdf Foundation DAO LLC to support its activities
* Other purposes that support the protocol

PIL is one possible use of the treasury. The full treasury share is not committed to DEX incentives. Budgets, timing, recipients, and distribution conditions depend on governance decisions; no fixed allocation or payment is promised for any of these uses. PIL does not guarantee market depth or trading at ¥1.

## Holding and allocation

Funds currently accumulate at the dedicated recipient. Collection alone does not make additional rewards or referral payments claimable. Each program needs an approved budget and an enabled distribution mechanism. Changing the interest-routing recipient and configuring a liquidity allocator go through the Timelock.

The Protocol Treasury is separate from the Foundation's operating assets. A donation requires a treasury allocation decision; the Foundation's ability to use the donated funds does not give it control over the remaining treasury.