Fee Structure
BBANK introduces a versatile fee structure for liquidity providers across various token pairs, featuring four distinct fee tiers: 0.008%, 0.045%, 0.25%, and 1%. This strategic flexibility allows LPs to align their profit expectations with the expected volatility of each pair
Fee Tier | Trading Pair Risk/Characteristics | Fee Rate |
---|---|---|
0.008% | Stable pairs with minimal impermanent loss | 0.008% |
0.045% | Assets with moderate impermanent loss, less stable liquidity | 0.045% |
0.25% | Exotic or less frequently traded assets | 0.25% |
1% | Rarely traded assets with pronounced impermanent loss | 1% |
In practice, pairs are expected to naturally gravitate towards specific fee tiers, forming their primary markets. Stable pairs are likely to adopt the 0.008% fee, while assets with higher impermanent loss or less stable liquidity may lean towards the 0.045% fee. Exotic or less frequently traded assets may find the 0.25% fee suitable, and rarely traded assets can choose the 1% fee.
The revenue from this new fee will be used to pay for BaseBank's operational costs, including development, maintenance, and promotional costs. These costs will go to a variety of initiatives, including funding the development of new BaseBank features, trading incentives, marketing campaigns, and more.
Please note that this is a simplified representation of the fee structure, and the actual rates may vary or be more nuanced based on the specific token pairs and market dynamics on BaseBank SuperDEX.
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