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Last updated
Last updated
At Orbitra Dex, every liquidity pool designated for a permitted asset pair includes a set LP Commission rate. This fee, fixed at 0.3%, operates separately from the algorithmic price-making that establishes the spread. When a trade occurs, this fee is subtracted from the asset received by the trader as a deduction for utilizing the liquidity pool.
The fee paid by traders with each trade returns to the specific liquidity pool as compensation for those providing liquidity. Liquidity providers have the option to withdraw the accumulated commission from the pool by burning the LP tokens they earned through contributing liquidity.
0.2% fees for LP holders
0.10% buyback and burn of $ORBIT
In conclusion, through the strategic implementation of these measures, we can ensure that limited partners (LPs) receive substantial returns. The buyback and burn mechanism serves as a pivotal tool in this strategy, offering a deflationary approach that significantly contributes to maintaining a robust LP pool. This mechanism not only underpins the stability of the pool but also exerts a positive influence on the price. By meticulously balancing these elements, we create a synergistic effect that bolsters investor confidence and enhances the overall health and growth potential of the LP pool, thereby securing a more prosperous and sustainable financial ecosystem for all stakeholders involved.