Fees

Dymension's embedded AMM charges two primary types of fees: the LP Swap fee and the Protocol Swap fee. Moreover, users can pay gas fees in a transferred token, provided there is sufficient liquidity in the corresponding pool.

LP swap fees and protocol swap fees are determined globally by Dymension's governance. Initially, at genesis, these fees are set at 0.20% for LP swaps and 0.10% for protocol swaps.

LP Swap Fee

Swap fees are proportionally distributed to liquidity providers at the time of the swap. These fees are automatically reinvested into the respective liquidity pool and are withdrawn upon the redemption of LP tokens.

Protocol Swap Fee

Protocol swap fees are charges applied to traders for each swap transaction. These fees are levied in the same denom as the tokens being exchanged. The accumulated fees are then converted into DYM through the respective pools, and are subsequently burned.

Foreign gas fee

Users have the option to pay gas fees in any transferred token, provided there is a matching liquidity pool on Dymension's AMM. In the backend, these fees are converted into DYM. The transformed fees are then distributed to validators and their respective stakers.