🔢Fees & feeLP

📌 LionDEX's PvP-AMM protocol avoids Borrowing Fee, Rollover Fee, and Funding Fee. It achieves this by increasing the maximum transaction size allowed for each fund, which in turn increases the transaction fee income. Alternatively, it can reduce the transaction fee expenditure for each fund transaction while keeping the transaction size unchanged. Users can also obtain the lowest level of transaction fees (0.008%) by pre-depositing fees.

🔸 Fee

📌️ Fees are charged in LP or feeLP, where: ▪️ Insurance claim fees are charged based on the claim amount. ▪️ Liquidation fees cannot be offset using feeLP.

📌️ Fee allocation: ▪️ 37.5% of the fees are allocated for LP Staking rewards. ▪️ 37.5% of the fees are used for LION token buyback and belong to the treasury. ▪️ 25% of the fees belong to Explorers Labs and are used for invitation rewards and rebates (ranging from 10% to 25%). ▪️ The 5 LP liquidation fee cannot be used to participate in the above fee allocation and has to be collected by the liquidation executor.

🔸 Deposit Fee & feeLP

📌️ LionDEX supports pre-deposits to enjoy transaction fee discounts, as shown in the below figure:

👨‍🏫 Note:

▪️ feeLP can be used to replace LP as transaction fee at 1:1, where it will be deducted first during transactions (*FeeLP cannot be used to offset settlement fees). Acquiring more feeLP through pre-depositing to get more discount on fees will not change the original transaction fee rate (0.08%). feeLP is an ERC-20 token that cannot be transferred or traded. ▪️ It is specified that feeLP can only be used for purchasing using LP.