💎Fee Distribution
Overview
Fees form the backbone of the protocol’s revenue model, creating sustainable incentives for the ecosystem’s growth and development. Our decentralized exchange (DEX) ensures that fees are democratically distributed, empowering both liquidity providers and token holders to participate actively in the platform’s financial ecosystem.
Fee Structure
The protocol collects the following fees through various trading activities:
Trading Fees: Incurred during token swaps or trade executions.
Staking Fees: Associated with staking rewards and platform interactions.
Liquidity Fees: Applied to liquidity provisioning and withdrawal.
Penalty Fees: Generated from liquidation or failed transaction penalties.
Revenue Distribution
Our fee distribution model is designed to incentivize key stakeholders in the ecosystem, ensuring their active participation and long-term commitment. Here’s how the collected fees are allocated:
Liquidity Providers (70%)
Purpose: Rewards liquidity providers for supplying assets to trading pools and ensuring smooth market operations.
Mechanism: Liquidity providers receive a proportional share of fees based on their contribution to the pool.
Token Stakers (30%)
Purpose: Incentivizes token holders who stake their tokens, contributing to the network’s security and governance.
Mechanism: Fees are distributed to stakers based on the amount and duration of tokens staked.
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