Fees

Runes DEX Fee is 2%

• 80% of this goes to liquidity providers

• 20% of this goes to treasury.

We want to minimize the amount of UTXO in user swap transactions, therefore following scheme is proposed:

• DEX Fees = LP Fees + Treasury Fees.

• DEX fees are collected in both bid & ask assets. Total fee is 2%, so we take 1% of bid asset and 1% of ask asset.

• DEX backend will keep track of treasury earnings in its database. Physically, coins will be located on a pool wallet (and controlled by pool wallet) and can be withdrawn by treasury wallet owner later in a separate withdraw operation. These coins will not be reinvested (e.g. added to pool balance in a database). Technically, when treasury withdraws, then network fee can be deducted from its BTC earnings.

• LP Fees will be reinvested, and LP providers can withdraw them by doing remove liquidity.