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The base trading fee for each pool is set manually by team with the aim of maximizing profitability. The optimal setting may frequently change due to shifts in liquidity provided by competing DEXes. Beluga also adjusts the base trading fee based on the current volatility of the market to optimize the spreads it captures as well as make front running more difficult. Currently, the volatility is detected using an off-chain bot. Later, we plan to implement it on chain.
Beluga applies a series of fees :
- Swap Fee (haircut): Each pool has its swap fee. Refer to Swap Fee for the detailed breakdown.
- Deposit gain and Withdrawal Fee: Only applicable when coverage ratio is off balance
- Coverage Ratio Fee: Only applicable to swaps in side pool
Fees detail will be displayed in the transaction confirmation window. Fees will be reserved.
Our revenue generation model is based on a small fee levied on every token swap, withdrawal, or trade fee that users generate on our website, 1inch, or any other DEX aggregator.
In line with our belief in sharing our income, 50% of swap fees collected will be disbursed evenly among all liquidity providers of the respective token, with the remaining 50% directed to our treasury. Fee sharing APR is displayed in the tooltip of the average APR, calculated with the below formula:
Fee sharing rewards are reflected in the underlying asset value of your LP, and is important to note that the fee sharing APR may fluctuate depending on our platform's trading volume.
All fees accrued in the past will be applied towards funding community incentives. Stay tuned for further updates!