NFT Fee Discount

Overview

The NFT Fee Discount Plugin is a tool designed in collaboration with Brevis to facilitate the subscriptions for Fees Discounts for DEX users. This plugin offers a seamless solution for DEXes to implement Fee Discounts via verifying a user's ownership of a certain NFT.

Key Features

• Customizable Discount Structures: DEX operators have the flexibility to customize discount structures based on specific NFT criteria, allowing for tailored incentives that align with their platform's goals.
• Automatic Fee Calculation: Automatically calculates fees based on type of a user's NFT.
• Trustless On-chain Data Computation: Utilizes trustless on-chain data computation by Brevis, ensuring transparency, security, and reliability.
• ZK Proofs Generation: Generates Zero-Knowledge (ZK) proofs via Brevis, enabling privacy-preserving verification of user conditions and actions.

Benefits

Increased Liquidity: Fee discounts can attract more liquidity to the DEX platform as users seek to benefit from lower transaction costs, thereby improving liquidity depth and trading volume.
NFT Utility: The plugin enhances the utility of NFTs by providing tangible benefits such as fee discounts, encouraging users to acquire and hold NFTs associated with the DEX.
Marketing Opportunity: Offering fee discounts through NFT ownership can serve as a unique marketing strategy to attract new users and promote awareness of both the DEX platform and the associated NFTs.
Enhanced User Engagement: By offering fee discounts tied to NFT ownership, the plugin incentivizes users to participate actively in the DEX ecosystem, leading to increased user engagement.
Community Building: The plugin fosters a sense of community among NFT holders and DEX users, creating opportunities for collaboration and interaction within the ecosystem.

Implementation

Integration with Liquidity Pools The NFT Fee Discount Plugin is designed to seamlessly integrate with liquidity pools within decentralized exchanges (DEXes), powered by Algebra Integral.

Use Cases

Decentralized Exchanges: The NFT Fee Discount Plugin is designed to enable decentralized exchanges to incentivize users and liquidity providers via implementation of NFT ownership-based fee discounts.

Conclusion

The NFT Fee Discount Plugin offers a comprehensive solution for DEXes to implement NFT-based Fee Discount Subscriptions effectively.

About Algebra Integral

Until now, each DEX had its source code in the form of a single immutable monolith, and updating such architecture required liquidity migration and associated additional expenses.

With the advent of Integral, it became possible to separate the most vulnerable part (liquidity storage) and peripheral functionality modules (e.g. oracles, fee calculation) from each other. Critical functionality of liquidity storage and swap calculations is kept at the unchangeable Core, while peripheral functionality performs as Plugins and can be updated when needed without liquidity migration. This approach allows DEXes to develop faster.

Plugins can be introduced by DEXes themselves or external developers encouraged by the fees to create new Plugins and push the technology forward according to DeFi current trends.