Fee Types

Dextr implements two types of fees to sustain its operations and incentivize participation within its ecosystem:

1. Trading Fees

These fees are paid by users who "take" liquidity from the protocol (known as takers). The total fee can't be higher than 0.45% and consists of two parts:

• ➡️LP Fees (up to 0.35%): Paid by traders who take liquidity from the protocol (takers), this fee compensates Liquidity Providers (LPs) for supplying assets. LPs offering fee discounts apply them only to this component. LP fees earned are automatically added to the LPs' liquidity reserves. 🔙

• Protocol Fees (0.1%): This fee supports the operational expenditure of the protocol. The protocol Fees is distributed as follows:

  • 25% to DAO Treasury: To fund community-driven initiatives for continuous improvement and innovation.

  • 25% to Foundation: To cover operational costs.

  • 25% to Operators: To maintain robust security infrastructure and protect the protocol against MEV exploits.

  • 25% to Underwriters: Dextr allocates 25% of the fees to the underwriters involved providing economic security to traders and LPs against MEV.

These figures are changeable. Additional fee for Hooks may apply.

2. Listing Fee

Dextr's Listing Fees vs. Traditional AMMs:

Dextr's approach to listing fees differs from traditional AMMs, which often lack explicit listing fees but present significant entry barriers and fragmented liquidity. For instance, some AMMs require substantial token deposits into liquidity pools for pair listings, accompanied by high gas fees for deploying factory smart contracts. In contrast, Dextr offers a streamlined alternative through its market-based listing fee structure:

Markets	One-time listing Fee	Remarks
Bitcoin	$2,500	Only Activates 1 Pair i.e. BTC/X
Stable Coins	$ 5,000	Activates All existing and future listed Stablecoin pairs.
Altcoins	$ 10,000	Activates All existing and future listed Altcoin pairs.
DXTR	Free	Only Activates 1 Pair i.e. DXTR/X

• One-Time Listing Fee per Market: Token listers pay a single fee to activate their token within a chosen market category (e.g., Bitcoin, Stablecoins). This fee covers all listed tokens and future listings within that category.

• No Listing Fee for DXTR: Token listers are exempt from paying any listing fee when activating a pair with DXTR token.

• Standard Pricing: Token listers can pay the listing fee in the any of the pre-listed tokens in that asset category e.g. for stablecoins category they can pay the fee in USDC.

• DXTR Discount: Listers receive a 10% discount when paying fees in DXTR token, promoting DXTR adoption and platform ecosystem growth.

The collected Listing Fee is distributed as follows:

• 75% to DXTR Stakers: DXTR stakers receive listing fee rewards as airdrops, distributed proportionally based on their staked DXTR tokens.

$$\text{Airdrop Amount} = \frac{\text{Amount of DXTR Staked by Claimer}}{\text{Total DXTR Staked}} \times \text{Total Airdrop Amount}$$

• 25% to the Foundation: This portion supports operational expenses to ensure the smooth operation of the protocol.