DEX Fee structure - Revision history

SaschaGLM: /* DEX stabilizing fee */

2022-09-12T20:01:34Z

DEX stabilizing fee

SaschaGLM: /* Overview */ DexFee after DFIP 2208-A updated

2022-09-12T19:52:20Z

Overview: DexFee after DFIP 2208-A updated

TorstenvonDFX: Link to translation added (German)

2022-08-07T16:56:38Z

Link to translation added (German)

DanielZirkel at 10:43, 30 July 2022

2022-07-30T10:43:28Z

DanielZirkel at 10:40, 30 July 2022

2022-07-30T10:40:48Z

DanielZirkel: Change overview pic

2022-07-30T10:36:48Z

Change overview pic

DanielZirkel at 10:25, 30 July 2022

2022-07-30T10:25:37Z

DanielZirkel at 21:04, 17 July 2022

2022-07-17T21:04:02Z

DanielZirkel at 20:56, 17 July 2022

2022-07-17T20:56:31Z

DanielZirkel at 20:54, 17 July 2022

2022-07-17T20:54:13Z

@@ Line 23: / Line 23: @@
 The DEX stabilizing fee depends on the relative part of the algo dUSD token on DeFiChain. Below 30% this fee is 0% and increases with values higher than 30% (see graph below).
-[[File:Stabilizing fee graphic.png|thumb]]
+[[File:Stabilizing fee graphic.png|alt=|center|frameless|469x469px]]
 The formula behind this dependency is:

@@ Line 11: / Line 11: @@
 * dBTC fee: 0.1%
 * dUSD/dToken fee: 0.2%
-* DEX stabilizing fee: 0...~34% (in dependence of the algo dUSD part)
+* DEX stabilizing fee: 0...~31,75% (in dependence of the algo dUSD part)
 [[File:DefiChainDEXFees.png|alt=|center|DeFiChain DEX swaps and fees|frame]]
@@ Line 21: / Line 21: @@
 === DEX stabilizing fee ===
-The DEX stabilizing fee depends on the relative part of the algo dUSD token on DeFiChain. Below 50% this fee is 0% and increases with values higher than 50% (see graph below).[[File:DEX stabilizing fee.jpg|border|center|frame|DEX stabilizing fee calculation]]The formula behind this dependency is:<syntaxhighlight lang="python">
+The DEX stabilizing fee depends on the relative part of the algo dUSD token on DeFiChain. Below 30% this fee is 0% and increases with values higher than 30% (see graph below).
-Let ALGO_DUSD_RATIO = 1 - (Loan DUSD / total DUSD supply)
-Let COEFFICIENT = 1.8
+[[File:Stabilizing fee graphic.png|thumb]]
-If ALGO_DUSD_RATIO > 0.5
+The formula behind this dependency is:
-    DEX stabilization fee = (COEFFICIENT ^ (ALGO_DUSD_RATIO - 0.5)) - 1
-Else
+* Ratio > 30%:    Dex Fee = (2 ^ ((Ratio – 30)/10) -1) / 4
-   DEX stabilization fee = 0%
+* Ratio <= 30%:  Dex Fee = 0
-</syntaxhighlight>With increasing stabilizing fee we will see a premium for dUSD on DeFiChain, because selling dUSD is getting more and more expensive. If you buy dUSD in the premium case you will get less dUSD than the dollar value you invested. And this makes minting dUSD via vaults and loans more attractive.
 === dUSD/dToken fee ===

← Older revision		Revision as of 16:56, 7 August 2022
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		+	[[DEX Gebührenstruktur\|German / Deutsch]]
		+
	When you are swapping tokens on DeFiChain a fee is conducted. At the beginning only the part for liquidity providers - commissions - were the fee in each pool. But after successful voting on several DFIPs other fee parts were introduced for specific purposes. This article describes the current DEX fee structure on DeFiChain.		When you are swapping tokens on DeFiChain a fee is conducted. At the beginning only the part for liquidity providers - commissions - were the fee in each pool. But after successful voting on several DFIPs other fee parts were introduced for specific purposes. This article describes the current DEX fee structure on DeFiChain.

@@ Line 10: / Line 10: @@
 * dUSD/dToken fee: 0.2%
 * DEX stabilizing fee: 0...~34% (in dependence of the algo dUSD part)
-[[File:DefiChainDEXFees.png|alt=|center|800x800px|DeFiChain DEX swaps and fees|border|frameless]]
+[[File:DefiChainDEXFees.png|alt=|center|DeFiChain DEX swaps and fees|frame]]
 === Commissions ===

@@ Line 10: / Line 10: @@
 * dUSD/dToken fee: 0.2%
 * DEX stabilizing fee: 0...~34% (in dependence of the algo dUSD part)
-[[File:DefiChainDEXFees.png|alt=|center|thumb|700x700px|DeFiChain DEX swaps and fees]]
+[[File:DefiChainDEXFees.png|alt=|center|800x800px|DeFiChain DEX swaps and fees|border|frameless]]
 === Commissions ===

@@ Line 13: / Line 13: @@
 === Commissions ===
-The commissions fee is currently 0.2% and is deducted from the tokens users want to swap on the DEX. These tokens are distributed to the holders of the liquidity token and are part of the incentive to provide liquidity. On [https://defiscan.live/dex defiscan.live] you can see the APR of each pool and with moving the mouse over the three blue dots the distribution between block rewards and commissions part is shown. High trading volume (e.g. in volatile market phases) will drive the commissions part.
+The commissions fee is currently 0.2% and is deducted from the tokens users want to swap on the DEX. These tokens are distributed to the holders of the liquidity token and are part of the incentive to provide liquidity. The commission fee is the same overall pools on DeFiChain - crypto and dToken.
 [[File:Defiscan APR rewardCommissions.jpg|center|frame|Defiscan showing the APR splitted into block reward and commissions part]]
 === DEX stabilizing fee ===
-[[File:DEX stabilizing fee.jpg|border|center|frame|DEX stabilizing fee calculation]]
+The DEX stabilizing fee depends on the relative part of the algo dUSD token on DeFiChain. Below 50% this fee is 0% and increases with values higher than 50% (see graph below).[[File:DEX stabilizing fee.jpg|border|center|frame|DEX stabilizing fee calculation]]The formula behind this dependency is:<syntaxhighlight lang="python">
 === dUSD/dToken fee ===
-With introducing the DFI payback function for dUSD loans an additional fee of 0.1% in dUSD was introduced for each swap with dUSD, see [https://github.com/DeFiCh/dfips/issues/99 DFIP-2112-A]. This was the first measure to remove the dUSD after closing the corresponding loans.
+With introducing the DFI payback function for dUSD loans an additional fee of 0.1% in dUSD was introduced for each swap with dUSD, see [https://github.com/DeFiCh/dfips/issues/99 DFIP-2112-A]. This was the first measure to remove the algo dUSD after closing the corresponding loans.
-With the [https://github.com/DeFiCh/dfips/issues/127 DFIP-2203-A] Futures Swaps to handle the premium and discount of the dTokens were introduced and with it a fee of 0.1% paid in the dTokens.
+With the [https://github.com/DeFiCh/dfips/issues/127 DFIP-2203-A] Futures Swaps to handle the premium and discount of the dTokens were introduced. In the same DFIP a fee of 0.1% paid in the dTokens was activated.
 Both parts (in sum 0.2%) are now applied for each dUSD-dToken pool and results in an overall fee of 0.4% for a swap with dTokens. The dUSD-DFI also had the 0.1% in the beginning, but due to newer DFIPs has now a different fee structure (see [https://defichain-wiki.com/wiki/DEX_Fee_structure?venotify=created#DEX_stabilizing_fee DEX stabilizing fee]).

@@ Line 4: / Line 4: @@
 === Overview ===
-The following diagram shows the different pool swaps on DeFiChain. In general there is a commission fee for every single swap (black arrows). Additionally there is the DEX stabilizing fee (red arrow), the BTC fee (purple arrow) and the dUSD/dToken fee (blue arrow).
+The following diagram shows the different pool swaps on DeFiChain. In general there is a commission fee for every single swap (black arrows). Additionally there is the DEX stabilizing fee (red arrow), the BTC fee (purple arrow) and the dUSD/dToken fee (blue arrow). Summary in short:
 [[File:DefiChainDEXFees.png|alt=|center|frame|DeFiChain DEX swaps and fees]]

← Older revision		Revision as of 20:56, 17 July 2022
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	=== DEX stabilizing fee ===		=== DEX stabilizing fee ===
		+	[[File:DEX stabilizing fee.jpg\|border\|center\|frame\|DEX stabilizing fee calculation]]

	=== dUSD/dToken fee ===		=== dUSD/dToken fee ===

@@ Line 18: / Line 18: @@
 With the [https://github.com/DeFiCh/dfips/issues/127 DFIP-2203-A] Futures Swaps to handle the premium and discount of the dTokens were introduced and with it a fee of 0.1% paid in the dTokens.
-Both parts (in sum 0.2%) are now applied for each dUSD-dToken pool and results in an overall fee of 0.4% for a swap with dTokens. The dUSD-DFI also had the 0.1% in the beginning, but due to newer DFIPs has now a different fee structure (see ).
+Both parts (in sum 0.2%) are now applied for each dUSD-dToken pool and results in an overall fee of 0.4% for a swap with dTokens. The dUSD-DFI also had the 0.1% in the beginning, but due to newer DFIPs has now a different fee structure (see [https://defichain-wiki.com/wiki/DEX_Fee_structure?venotify=created#DEX_stabilizing_fee DEX stabilizing fee]).
 === BTC fee ===