DODO charges a 0.1% fee on all non-stablecoin swaps done through the SmartTrade routing algorithm.
We have defined token swaps using Coingecko's stablecoin category for stablecoin swaps, and any other transactions as non-stablecoin swaps. Eg. USDT to USDC is defined as a stablecoin swap whereas ETH to USDT is not a stablecoin swap.
Coingecko stablecoin list found here: https://www.coingecko.com/en/categories/stablecoins
This fee is deposited in a special treasury account, whose address is 0x6c1c420C04F4D563d6588a97693aF902b87Be5f1.
The revenue from this new fee will be used to pay for SmartTrade’s operational costs, including development, maintenance, and promotional costs. These costs will go to a variety of initiatives, including funding the development of new SmartTrade features, trading incentives, marketing campaigns, and more.
This new fee is essential to the continued growth and success of the SmartTrade routing algorithm. As things currently stand, there is no source of funds dedicated to its operational effort, and therefore the continued development and community adoption of this feature remain limited. The new trading fee will allow DODO to not just maintain SmartTrade’s efficiency and market competitiveness, but also to grow SmartTrade to encompass new features and horizons - thereby increasing its market share and overall efficiency. The more it grows, the better the swap prices become - and the more the trading fee pays for itself in ensuring the best conversion rates.
The guidelines above will be implemented in the Ethereum, Optimism and BNBChain first, and will be launched on the rest of the chains on a later date.
The LP fee is collected by the liquidity pool and distributed to liquidity providers based on their share of the pool. The LP fee rate varies for each pool, and you can view it on the pool details page.
DODO will allocate 20% from the public pool fees for DODO token buyback and the community treasury. The specific distribution ratio is as follows:
- 80% to liquidity providers (LPs)
- 15% to repurchase DODO tokens and distribute it in the form of vDODO to vDODO holders
- 5% to the DODO Community Treasury
Please note that for the following liquidity pools, the LP fee rate is 0, and only the MT fee will be charged.