Trading Fee Discount
The motive behind this initiative is the one of rewarding and incentivising those avid Minswap users who trade on the DEX on a frequent basis. Read below for how the Batcher Fee Discount works!
Currently, everyone who swaps on the Minswap DEX pays a 2 $ADA fee in addition to the 0.3% fee that is paid to LPs. As part of the initiative to increase the utility of the $MIN token within the platform, the $MIN token will entitle traders on Minswap to a Discount on this 2 $ADA Batcher Fee as long as:
- 1.They hold $MIN in their wallet the moment they make the trade.
- 2.Or they have provided $MIN as liquidity providers and they hold $MIN/$ADA LP Tokens in their wallet the moment they make the trade.
For now, the discount will not apply to those who are staking $MIN/$ADA LP Tokens in Yield Farming or have $MIN/$ADA LP Tokens in the MINt conversion process.
The moment you want to make a trade on Minswap, the backend will identify how many $MIN tokens you hold (whether $MIN in your wallet, or $MIN in $MIN/$ADA LP Tokens) and will apply a Discount on the 2 $ADA Batcher Fee depending on the Fee Structure underscored below.
The maximum amount for the Fee Discount on the Batcher Fee is 50,000 $MIN and the equivalent LP Tokens (at the time of writing 25,000 $MIN and the equivalent $ADA are 5,000,000,000 $MIN-ADA LP Tokens). The maximum Discount will be 25%, meaning users with more than 50,000 $MIN or 5,000,000,000 $MIN-ADA LP Tokens will pay 1.5 $ADA instead of 2 $ADA. Users with less than 50,000 $MIN will also receive a Discount on their Batcher fees as long as they have 1 $MIN worth in their wallet. This Discount is determined by the following formula:
- (X) is the amount of MIN in the wallet
- (Y) is the amount of ADA-MIN LP in the wallet
- (MX) is the amount of MIN which can get 25% reduction (currently 50,000 $MIN)
- (MY) is the amount of ADA-MIN LP which can get 25% reduction (currently 5,000,000,000 $MIN-ADA LP Tokens)
As such, Batcher Fee Discount is linearly increased based on the amount of $MIN and $MIN-ADA LP. ou can see a table representative of the different discounts and the $ADA fee to be paid and the amount of $MIN needed above. Bear in mind, even a wallet with 1 $MIN will be eligible for a Discount in the Batcher Fee!