3. Transaction Fees

Fees are set locally for each Liquidity Pool (including HIDE pairs) and should naturally reflect the volatility and risk appetite of the specific LP portfolio. In future upgrades of hideaway, any LP will be able to set their own desired fee rate for their own liquidity.

3.1 HIDE Pairs

HIDE LPS do not charge fees on the purchase side of HIDE and, as a result, this makes the HIDE hop facility more efficient. They do receive transaction fees in the normal way for purchases of the non-HIDE leg in the pairing.

3.2 Protocol Fees

A charge of 25% is applied to all transaction fees from Liquidity Pools which is used to purchase HIDE tokens from the respective HIDE Pairs (HIDE Fee).

For example, if pool fees are 20bps, 5 bps are allocated for the HIDE Fee, with 15bps retained by LPs.

3.3 HIDE Burn

A portion of the HIDE Fee is burnt and this ratio is determined from 1 − S, where S is the proportion of HIDE that are Staked at the time of the respective transaction.

Noting that at zero Staking, all of the HIDE Fee is burnt.

3.4 HIDE Fee Post Burn

The residual HIDE Fee tokens are Distributed to Liquidity Pools for the benefit of the respective LP holders.