Dynamic Fees

Dynamic fees are one of the exciting designs of SyncSwap. Trading fees are highly customizable on SyncSwap DEX and can be adjusted flexibly according to market conditions or the community's will.

There are four facets.

  • Variable Fees.

  • Directional Fees.

  • Fee Discount.

  • Fee Delegate.

Currently, the maximum fee tier is 10%, making the adjustment highly customizable.

Variable Fees

The variable fees are the most basic feature of dynamic prices. The variable fees allow fees to be separately adjusted for different pool models and specific liquidity pools.

There is a default fee for each pools models, and the fees of liquidity pools will inherit the default fee of its pool model if not set.

The variable fees not only apply to trading fees but are also applicable to protocol fees.

Directional Fees

The directional fees allow a liquidity pool can have custom trading fee tiers in different directions.

Typically there are two directions.

  • Buy a token.

  • Sell a token.

For example, for one XXX/USD liquidity pool, the fee tier of buying XXX can be 0.05% or even free. However, the fee tier of selling XXX can be 1%.

The directional fee can be set upon the request of the community and the token issuer (i.e., other ecosystem protocols).

Fee Discount

The fee discount is supported in SyncSwap, just like CEXs.

The fee discount will be available for token stakers in the future, with different fee discount tiers. The more tokens have been staked, the higher the discount ratio is.

Fee Delegate

The fee delegate is one of the ultimate innovations around fees.

With fee delegation, it's possible to delegate the trading fee of specific pools to partner ecosystem projects dynamically in a democratic way.

Upon the request of correspondingecosystem projects, it's possible to transfer the decision of the trading fees of specific pools completely to external sources (i.e. other ecosystem projects)

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