Demystify The Fees
Last updated
Last updated
Theoretically when you make a transaction in a Nulswap Liquidity Pool the transaction is charged a 0.4% fee, but in practice part is returned to the stake holders.
Let's demystify the whole process for a better understanding, lets go!
The concept of Liquidity Pools is the set between two tokens, we can represent as Token A (NULS) with Token B (BUSD). In this example, in the Liquidity Pool deploy we define that NULS is the Token A and BUSD the Token B. This will precisely correspond to an LP Token with the designation NULS/BUSD
In all swaps made from Token A (NULS) to Token B (BUSD) there is a 0.4% fee that is dismantled in:
0.05% of the fee will automatically add liquidity to the pool, ALP ( Read more about here )
0.05% of the fee will buy back NSWAP and directed to the share distribution contract
0.05% of the fee will be directed to the operational costs contract
0.25% of the fee will be to reward Liquidity Providers
In all swaps made from Token B (BUSD) to Token A (NULS) there is a 0.4% fee that is dismantled in:
0.05% of the fee will directed to the share distribution contract
0.05% of the fee will buy back NSWAP and directed to the share distribution contract
0.05% of the fee will be directed to the operational costs contract
0.25% of the fee will be to reward Liquidity Providers
When one of the tokens in the PAIR is NSWAP there will be no automatic buy back to avoid creating a loop in the mechanism and in this way the 0.1% of the fee will be automatically directed to the share fee contract and a manual buy back will be made depending on the amount available in the contract. After BuyBack, it will be sent for the staking contract to reward even more all stake holders in a sustainable way
