Protocol Fee

An optional protocol fee (e.g., 0.05%) may be retained by the protocol itself. These funds can be directed to a treasury and later used for:

• Ecosystem development

• Protocol upgrades

• Incentive campaigns

• Community governance (once enabled)

Fee values are configurable per pool and can be updated by the pool admin. This modular approach allows for different pools to adopt fee structures best suited to their use case (e.g., lower fees for stablecoin swaps, higher for volatile tokens).

The fee logic is implemented with overflow-safe math and is transparently auditable.

Liquidity Provider Fee

A portion of the fee is distributed directly to the liquidity providers (LPs) in the pool. This serves as an ongoing incentive for LPs to supply capital and keep markets active. For example, if the fee is set at 0.3%, up to 0.25% might go to LPs.