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 consists of two parts:

  • ➡️LP Fees: This fee compensates LPs for supplying assets. LPs quote the fee they wish to charge for settling the trade. LP fees earned are automatically added to the LPs' liquidity reserves. 🔙

  • Protocol Fees: 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.

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