Protocol Fees

Sources

Trade Fees

The obvious source of Protocol Fees is from trading. Traders pay fees to Liquidity Providers in exchange for making their swap possible. Fees are denominated in the Input Token when executing a trade.

The Protocol Fees for trades will be collected as a percentage of the trade fees already being collected (a fraction of a fraction). From the traders' perspective, there is no price increase.

Flash Loan Fees

Another source of Protocol Fees is from interest on Flash Loans.

Protocol Fee Distribution

An TBD percentage of the fees collected through trade and flash loan protocol fees will be used to buy EMBR off the open market and redistribute them to . 50% of protocol fees will be used to build a diversified DAO controlled LP treasury that will act as a solid tailwind for future growth. The remaining 20% will be kept by the team to fund continued development and infrastructure costs.

Future governance

In the future, protocol fees as well as distribution will be defined through governance votes.