Fees

Fee Structure

Opening a position on Dexodus costs fees. Depending on the type of trade being placed, the fee rake is different and will be indicated on the trading UI. Fees are taken as a portion of position size, and the two types of fees that can be taken are either a Maker fee or a Taker fee. When a Maker or Taker fee is triggered, the fee is split amongst a variety of parties, with users who are DXG stakers able to claim a portion of the fee on a regular basis. Fee share can be collected in the Staking interface on Dexodus. Maker Fees: Maker fees are implemented when a limit order is placed, and the fee is taken only when the position is opened, not when the order is placed. Maker fees apply to both opening and closing of positions, and taken as a portion of the position being opened or closed.

Taker Fees: Taker fees are implemented on market orders. Taker fees are taken on the position being opened or closed at the moment of closing. All Stop Losses, Liquidations, and Take Profit points are considered Market Orders, and thus, are subject to a Taker fee.

Fee Distribution

The fee distribution mechanism within the Dexodus protocol is designed to ensure that fees collected from various platform activities are allocated effectively to support the ecosystem and incentivize participants. This section outlines the allocation of fees within the protocol and the benefits to liquidity providers and stakers.

Allocation of Fees

Fees collected from trading activities, including maker and taker fees, funding fees, and other operational fees, are distributed across several key areas within the Dexodus ecosystem:

Protocol-Owned Liquidity (POL):

• A portion of the fees is allocated to the Protocol-Owned Liquidity pool, which helps maintain liquidity and stability within the Dexodus platform. This ensures that there is always sufficient liquidity for traders to execute their trades efficiently and helps mitigate the risk of bad debt.

Staking Rewards:

• A portion of the fees is distributed to DXG token stakers as rewards. This incentivizes users to stake their DXG tokens, contributing to the overall health and security of the Dexodus network.

Treasury:

• Some fees are allocated to the team treasury, providing funds for further development, marketing, and operational expenses. This supports the continuous growth and improvement of the Dexodus platform.

Gas Sponsorship:

• Fees are used to cover gas costs for transactions made within the Dexodus platform. This gas sponsorship feature simplifies the trading process for users by eliminating the need for them to hold Ethereum (ETH) to cover transaction fees.

LPs and Stakers

Liquidity Providers (LPs) and Stakers are crucial participants in the Dexodus ecosystem. The fee distribution mechanism ensures that these participants are adequately rewarded for their contributions.

Liquidity Providers:

• Fee Share: LPs receive a share of the fees generated from trading activities directly to the pool. This includes maker and taker fees as well as funding fees. The allocation to LPs helps incentivize the provision of liquidity, ensuring deep and stable liquidity pools.

• Rewards: LPs may also receive additional rewards in the form of DXG tokens, further enhancing their returns and encouraging continued participation in the liquidity provision.

Stakers:

• Staking Rewards: DXG token stakers earn rewards derived from a portion of the fees collected from platform activities. These rewards are distributed periodically and are proportional to the amount of DXG staked. This means that LPs who stake their earned tokens are effectively earning from both sources of fee share.

• Fee Discounts: Stakers who hold veDXG can receive discounts on trading fees. The more veDXG a Staker holds, the greater the discount they receive, incentivizing users to stake more DXG.