💹Fees

A fee is charged on all trades on Zootopia pools by traders in the respective native pool tokens. This fee is embedded in the Zootopia smart contracts and is subject to adjustment by the Zoo community

How do fees work?

Let us assume we are already familiar with Uniswap AMM model: x * y = k Suppose the stableswap pool has three assets, ACash, BCash, CCash, with the respective balance of each token in the AMM pool represented by A, B, and C.

Let us use an example to describe fees - Zootopia swap fee is 0.01%, which means that 0.01% of y (or CCash, in this example) will be fees and 99.99% of y will be sent to us as a result. We sent x tokens of ACash, received 99.99% * y tokens of CCash, and 0.01% * y tokens of CCash were paid as fees. Swap complete! Notice that the stableswap fee is applied to received assets.

Swap

As a profit for the protocol, the stableswap invariant pool fee will be set at 0.01%, denoted as h. The fee is charged in the to-token.

Currently, all fees retain in the pool as a reserve. A section of this fee might be shared with liquidity providers in the future.

Withdraw

Zootopia StableSwap fork with Curve.

For Details, check CURVE WHITEPAPER.