🔓Fees
Swap fees
Last updated
Swap fees
Last updated
In the Astro Swap concentrated liquidity protocol, swap fees are allocated proportionally to all liquidity positions that are within the active price range at the time of a swap transaction. Only those liquidity positions whose price ranges encompass the current spot price are considered active and eligible to earn fees. When the market price moves outside a position’s specified range, that position becomes inactive and ceases to earn any swap fees.
Contrary to traditional Automated Market Maker (AMM) contracts, where newly accrued swap fees are automatically added to the liquidity pool, the Astro Swap protocol accumulates swap fees separately. This design allows liquidity providers (LPs) to claim their accumulated fees without needing to withdraw their provided liquidity.
It is essential to note that the Astro Swap protocol consists of a set of autonomous smart contracts deployed on Mantle Network. These contracts are operated directly by users who call functions on the protocol, enabling them to engage in peer-to-peer interactions and pool selected assets with others. The entity that initially deployed these smart contracts plays no further role in their operation, serving merely as a provider of technical tools for users. This entity does not offer any securities products or regulated services and does not take custody of user assets.
0.05% : Best for stable pairs.
0.3% : Best for high liquidity pairs.
1% : Best for low liquidity pairs.
Different types of token pairs are expected to gravitate towards certain fee levels based on their asset characteristics and the interplay between supply and demand from liquidity providers and traders. For instance, pairs involving stablecoins, which typically exhibit low volatility, are more likely to be found in pools with the lowest fee tier. This is because such assets present lower risk for LPs and traders often expect transactions with stablecoins to occur at near 1:1 value. Conversely, pairs involving assets that are less frequently traded or have high volatility may lean towards pools with higher fee tiers, reflecting the increased risk for liquidity providers in holding such assets.
To support a sustainable economic model that benefits the long-term development of the project's treasury, Astro Swap deducts a standard 20% from the swap fees of every transaction as a protocol fee. This approach helps maintain the financial health and ongoing development of the project.
