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Dynamic Fee System
Dynamic Fee System
Our dynamic fee system adjusts fees during volatile situations to reduce and compensate for possible impairment loss.
You can see the base fee of each pool on the liquidity pools page. The exact percentage is set by the protocol owner when creating the pool.
The variable fee on the other hand depends on the volatility of the market. It will be affected by the frequency of the swaps, but doing large swaps accross many bins (on large price movements) will also increase it. Fees are calculated and distributed per bin, to allow a fair distribution of the fee to the liquidity providers of the bin crossed.
Fees are calculated iteratively as each bin is crossed (if the swap is large enough). In other words, if a large swap crosses
bins, then the total swap fee is calculated per bin
, where
is the difference in bin IDs from the initial bin where the swap originated and the current bin in which it is being calculated.
Last modified 4mo ago