Dextr AVMM Whitepaper v3.0
  • INTRODUCTION
    • Abstract
    • Background and Opportunity
  • Solution
    • Overview
    • AMM vs AVMM
    • Technology Architecture
    • Development Roadmap
  • liquidity provisioning
    • Liquidity Reserves
    • Liquidity Positions
    • LP Ranking & Trade Settlement
  • Dextr AVS
    • Economic Security Model
    • Claim Settlement
  • Fee & Revenue
    • Fee Types
    • Revenue Utilization
  • About DXTR Token
  • Benefits
  • Conclusion
  • Risks & Disclosure
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  1. Fee & Revenue

Fee Types

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Last updated 3 months ago

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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