Fee

DotSwap charges a total swap fee of 2 %, divided in a 4 : 1 ratio between liquidity providers and the platform.

Portion
Rate
Recipient
Purpose

LP Fee

1.6 %

Nexus LPs & DotSwap LP

Incentivises Makers to supply deep, competitive liquidity.

Service Fee

0.4 %

DotSwap

Funds Nexus infrastructure, audits, and future development.

How the Split Works

  1. Engine Calculates Fee When building a PSBT, Nexus Engine adds an output collecting 2 % of the trade’s notional value.

  2. Autodistribution Upon settlement, 1.6 % is routed to the Maker UTXOs proportionally, while 0.4 % is directed to DotSwap’s service address.

  3. LP Points The LP portion simultaneously accrues volume‑based points that convert to ET tokens.

Customisation

  • Pair‑Specific Ratios The first Maker to create a new pool can propose a different split (e.g., 3 : 1 or 5 : 1). Changes require DotSwap governance approval.

  • Promotional Discounts DotSwap may temporarily reduce its 0.4 % cut during liquidity‑mining campaigns.

Transparency & Auditing

All fee outputs are visible in the on‑chain transaction. Users can verify the 4 : 1 split via any Bitcoin block explorer.

Summary: The 4 : 1 model balances sustainable platform funding with attractive returns for LPs, aligning incentives across the DotSwap ecosystem.

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