cryptoalgebra
Developer
Categories
AMM
discount
Hooks
beforeSwap

Whitelist Fee Discount

live

Summary

This plugin allows DEXes to set swap fees for the specific set of user addresses on specific pools. When a user with a whitelisted address performs swap a custom static fee is applied.
Custom fee settings can be used to incentivize known actors that perform a big volume of swaps. Fee discount will make swaps more attractive for such actors and will in turn result in bigger swap volume.
By managing the trade-off between volume and fee discount it is possible to reach the point of mutual benefits for both LPs and big traders.

Features

UI-less: this plugin can be configured via direct contract calls by DEX owner or Fee Discount Manager role
Low gas overhead: 17K gas on every swap

Benefits

DEX: DEXes gain the way to incentivise market-maker traders to attract extra volume.
LPs: Liquidity Providers benefit from increased swap volumes that recompense the fees discount on swaps.
Traders: Market-maker traders benefit from reduced swap costs while regular traders do not feel any side effects.