Fees structure

Base fees

  • Our protocol implements a configurable base fee system, ranging from 0% to 1% through governance control. Our aim is to offer competitive pricing compared to other DEX, initially setting the base fee at just 0.1%

Dynamic Fees

  • Dynamic fees mechanism is employed to faciliate the LST basket rebalancing and make the protocol more sustainable.

  • First, we calculate thecurD and postDiff, they are Euclidean distance between the current/post-swap and the target weights.

  • If postDiff < curDiff,the transaction contributes to balance the basket by bringing the current weights closer to the target weights. dynamicFee = 0

  • If postDiff > curDiff,user will need to pay a dynamic fee due to the action of moving further away from the target weight. dynamicFee is calculated as below:

    • dynamicFee = (slope_x * (postDiff-curDiff) + 1/2*slope_x^2 * (postDiff-curDiff)^2)/normalizeFactor

    • The normalizeFactor is employed to normalized the dynamicFee within the range of 0-100%

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