Swap Fees
(Fee allocation subject to change before mainnet launch)
XenDEX uses the Constant Product Market Maker (CPMM) model to ensure a fair, efficient, and decentralized trading experience.
Total Trading Fee
A 0.25% trading fee is applied to all swaps on XenDEX. This fee is automatically distributed as follows:
Fee Allocation
š¹ Lquidity Providers - 84% (0.21%)
Purpose: Rewards users who provide liquidity to XenDEX pools, ensuring deep liquidity and a seamless trading experience.
Allocation: 0.21% of each trade is distributed proportionally to liquidity providers based on their share in the pool.
š¹ Governance Token Buybacks ā 12% (0.03%)
Purpose: Supports the value of the governance token ($DEX) through a buyback and burn mechanism.
Allocation: 0.03% of each trade is used to buy back and burn $DEX tokens, reducing circulating supply and enhancing token value for holders.
š¹ Protocol Treasury ā 4% (0.01%)
Purpose: Covers operational expenses, security audits, marketing, and ongoing development to ensure platform sustainability.
Allocation: 0.01% of each trade is directed to the treasury for platform maintenance and future upgrades.
Example Calculation
š¹ Fee Deduction: The 0.25% trading fee is deducted from the input token during each swap.
For example: Swapping 100 units of Token A for Token B incurs a 0.25 Token A fee, leaving 99.75 Token A to be exchanged for Token B.
š¹ Fee Distribution:
Liquidity Providers: 0.21 Token A (84%) is distributed among LPs.
Governance Token Buybacks: 0.03 Token A (12%) is converted to $DEX and burned.
Protocol Treasury: 0.01 Token A (4%) is directed to the treasury.
Network Fees
X1 Blockchain Fees: In addition to the trading fee, transactions incur minimal network fees in $XN, typically ranging from 0.0001 to 0.001 $XN, paid to the X1 blockchain for transaction processing. Ensure your wallet has sufficient $XN to cover these fees.
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