Protocol Fees

Fee Structure

CrossDex implements a fee structure designed to sustain operations, reward liquidity providers, and fund continuous development and security improvements. These fees are critical for maintaining the protocol's long-term viability and competitiveness.

Trading Fees

• Swapping Fee: A percentage fee is charged on each swap transaction. This fee is split between liquidity providers and the protocol treasury, ensuring that liquidity providers are compensated for their contributions and the protocol has funds for ongoing development.

• Fee Variability: Trading fees may vary based on the liquidity pool, trading volume, and market conditions. This flexibility ensures competitive and fair fees for users.

Liquidity Provision Fees

• Deposit Fees: When users add liquidity to a pool, a minimal deposit fee is charged. This fee helps maintain pool stability and covers transaction costs.

• Withdrawal Fees: Small fees are applied when users remove liquidity from a pool. These fees are designed to prevent rapid liquidity withdrawal that could destabilize the pool.

Protocol Revenue Distribution

• Liquidity Providers: The majority of trading fees are distributed to liquidity providers as rewards for their participation.

• Treasury: A portion of the fees is allocated to the protocol's treasury. These funds are used for future development, marketing, security audits, and other ecosystem growth initiatives.

• Burn Mechanism: Periodically, a portion of the fees may be used to buy back and burn CDE tokens, reducing the circulating supply and potentially increasing the token's value.