Below is a description of the current fees in the Sovryn system. All fees are controlled by the governance mechanism and subject to change.
Liquidity Providers can provide funds to the Sovryn AMM in return for a share of the fees generated through swaps in a given pool.
Pools where users must provide liquidity to both sides of the pool (v1 pools) charge a swap fee of 0.30%. The swap fee is split between AMM Liquidity Providers and the Fee Proxy contract (the smart contract responsible for holding fees until stakers withdraw them).
Unlike most other AMM's, such as Uniswap, some pools do not require deposits to both sides of the pool, LPs can add only one or both of the tokens (v2 pools). The fee on these pools are currently set to 0.1%, which is also solely distributed to LPs.
LPs also earn 0.1% of every margin trade performed.
The Sovryn protocol collects a fee on each margin trade that is performed. This fee is currently set to: 0.15%. A 0.09% fee on loan origination and a 10% fee on interest repayments is also collected by the protocol, to be distributed to SOV Bitocracy stakers.
The interest rate paid by borrowers to lenders (APR) is set dynamically based on supply and demand - the ratio of supply to loans. It can range from 1% to 100%.
The Sovryn protocol collects an origination fee on every loan, currently set to 0.09%
In addition to the fees collected by the Sovryn system, users will benefit from the ability to earn SOV tokens through Liquidity Mining. 45% of SOV tokens will be distributed this way.
|Collected by Sovryn||Collected by Lenders||Collected by LPs|