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Dynamic Fees
The Mute Switch allows for pools to be created with LP fees ranging from 0.1% all the way up to 10%. Once set upon pair creation, these fees can only be changed with the LP governance system. An LP provider (or delegated provider) with 50%+ vote weight can always change this fee. To prevent from gaming the system, there is a 0.1% fee on total votes when changing the fee of pools. This prevents flash loans from changing fee structures without some sort of losses. The simplicity of the dynamic fee pool w/ governance allows for a powerful system and tool for many projects in DeFi & crypto. Game Theory By observing traditional CEX markets and even most NFT marketplaces, it has been normalized for fees of 1%+ to be in place via marketmakers (spread), and content creators & teams (nfts). This fee system should empower not only individual LP providers, but also projects that focus on Protocol Owned Liquidity (POL) to set their base fee for their pairs to be able to build up a larger revenue stream for the project, versus what they can find on most traditional AMM based DEXs.
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