> For the complete documentation index, see [llms.txt](https://gitbook.mor.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gitbook.mor.org/~/revisions/3ulU7lsttK8DsMz9IH4e/smart-contracts/documentation/distribution-protocol/v5-protocol.md).

# v5 Protocol

## Introduction

The primary goal of the v5 protocol is to ensure accurate distribution of MOR tokens among stakers of various buckets based on their staked stETH.&#x20;

Capital stakers (Capital bucket) deposit stETH on the Ethereum network through this protocol for a some period of time, in exchange for receiving yield in the form of MOR tokens on the Arbitrum One network utilizing LayerZero for cross-chain messaging. The yield is calculated based on the user’s stake, the total stake across all users, and the overall reward pool. A user’s yield can be increased through participation in the referral program or by utilizing a power factor.

Other buckets **do not** stake stETH directly into the smart contract. Instead, the contract owner allocates reward shares to specific addresses. These addresses, following a similar logic to capital stakers, can claim MOR tokens based on their assigned share.

In turn, the Morpheus protocol earns yield from the stETH deposited by users. This yield is transferred to Arbitrum using the Arbitrum Bridge. On L2, the yield can optionally be converted into MOR tokens to increase liquidity in the Uniswap pool.

Each bucket has its own separate reward pool, and these do not overlap. This ensures that capital stakers are not mixed with other participant groups, maintaining clear reward boundaries and fair distribution within each category.


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