Fee Mechanics and Distribution

Mechanics:

  • Each trade within a pool incurs a fee, defined by fee_percent.

  • Fees accumulate in accumulated_fees and contract_owner_accumulated_fees balances.

withdraw_currency<CURRENCY>(...) (in the SALE module) and analogous fee collection functions in TRADE:

  • The pool owner or designated authority can distribute accumulated fees to recipients.

  • LP token holders indirectly benefit from these fees as they increase the value of the pool’s assets over time.

Use Cases:

  • Incentivize liquidity provision by sharing fee income with LPs.

  • Reward the pool creator or contract owner for maintaining a healthy market.

Best Practices:

  • Set fees at a level that attracts liquidity without discouraging trading.

  • Regularly collect and distribute fees to maintain trust and financial clarity.

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