Swapping fees are immediately deposited into liquidity reserves and distributed to all liquidity immediately when there is a swap executed. There is a 0.25% fee for swapping tokens and here is how the fee is allocated:
- 0.17% is split by liquidity providers proportional to their contribution to liquidity reserves.
- 0.045% is sent to the Sigmaswap Staking Pool.
- 0.01% is used for the buyback& lock method.
- 0.025% is collected as the protocol fees.
Since fees are added to liquidity pools, the invariant increases at the end of every trade. Within a single transaction, the invariant represents
token0_pool / token1_pool at the end of the previous transaction.
Liquidity Mining Fees
1% of distributed rewards are collected by Sigmaswap once the user claims. The collected fund then is used for buyback & burn method for SIGMA token.
2% of distributed rewards are collected by Sigmaswap once the user claims. The collected fund then is used for buyback & lock method for SIGMA token.
The protocol fee only comes from one source, exchange fees. A share of 0.025% from overall trading fee is kept to maintain the platform and for further development.
Protocol Charge Calculation
It simply represents 1/10 or 10% of trading fees. Users can check where the collection goes by looking at the address of
feeTo in the Factory contract.
Since Hedera announced the policy to charge on smart contract rent, Sigmaswap protocol applies an extra fraction of 1/10 charge on top of the actual network fee to pay for contract renewal. The protocol sets default gas consumption starting from 200,000 gas to ensure users' transaction completion. However, this could be adjusted by the users.
See the network fee estimator here.