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%