Dynamic Fees
OtterHome DEX has a unique and exciting feature - dynamic fees. Our trading fees are highly customizable, and can be adjusted according to market conditions or the community's preference.
There are four facets to our dynamic fees system:
Variable Fees Our variable fees allow for fees to be separately adjusted for different pool models and specific liquidity pools. Each pool model has a default fee, and liquidity pools will inherit the default fee of their pool model if not set. This feature applies not only to trading fees, but also to protocol fees.
Directional Fees With our directional fees feature, each liquidity pool can have custom trading fee tiers in different directions, such as buying or selling a token. This allows for a more flexible fee structure and can be set upon the request of the community and token issuers.
Fee Discount We offer fee discounts, just like traditional centralized exchanges. In the future, token stakers will be able to enjoy different fee discount tiers, with higher discounts for staking more tokens.
Fee Delegate Our fee delegate feature is one of the ultimate innovations around fees. It enables the delegation of trading fees of specific pools to partner ecosystem projects dynamically in a democratic way. Upon the request of corresponding ecosystem projects, it's possible to transfer the decision of the trading fees of specific pools completely to external sources.
Our maximum fee tier is 10%, making the adjustment highly customizable. We believe that our dynamic fees system can enhance liquidity and market efficiency on our DEX, while providing a flexible and user-friendly trading experience.
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