Fees
When users make trades on Cashmere, swap fee is collected.
Fees are collected to keep the system running smoothly and to allocate pool earnings to liquidity providers and veCSM Holders.
Swap Fee: 0.04% Similar to withdrawal arbitrage, “Deposit Arbitrage” is harmful to the protocol’s long term financial health. To counter the attacks, we have devised our own withdrawal fees mechanism.
A very small deposit fee is already sufficient to prevent such an attack.
Assume the deposit amount is equal to 1% of the pool:
Compensation Ratio | Withdrawal Fee |
|---|---|
<= 1 | 0.0000% |
1.1 | 0.0017% |
1.2 | 0.0012% |
1.3 | 0.0008% |
1.4 | 0.0006% |
Withdrawal Fee for Arbitration: when coverage < 100%
“Withdrawal Arbitrage” is able to drain funds from the pool and is harmful to the protocol’s long-term financial health. To counter the attacks, we have devised our own withdrawal fee mechanism.
In most cases, however, a very small withdrawal fee is already sufficient to prevent such an attack.
Assume the withdrawal amount is equal to 1% of the pool:
Compensation Ratio | Withdrawal Fee |
|---|---|
>= 1 | -0.0000% |
0.9 | -0.0011% |
0.8 | -0.0093% |
0.7 | -0.0518% |
0.6 | -0.2731% |
Last modified 7mo ago