Providing Liquidity

General Formula for Fees

The equation below defines a function g(r) where:
  • r is the collateralization ratio
g(r)=0.00003r8g(r) = \frac{0.00003} {r^8}
This general formula is used for calculating fees associated with providing liquidity to the protocol, as well as slippage.
In the future, the numerator (0.00003) and the exponent (8) may be adjustable for independent pools to allow for more flexibility.
The following subjects feature more detailed explanations on depositing, withdrawing and the liquidity provider token set-up.