🍞Arbitrage and Fees

Fees

Regular swaps have low 0.05% fees (5 bps)

Arbitrage swaps have very low 0.01% fees (1 bps)

The majority of protocol revenue is expected to come from arbitrage.

Arbitrage

Arbitrage earnings are broken down as follows:

90% - Liquidity providers (split evenly between the pools involved in the trade)

3% - Arbitrageur

3% - Protocol revenue

3% - Reserved for potential token buybacks

1% - Referral (if not present, this is added to the LPs)