Fee Structure

Fees in the Sovryn System Below is a description of the current fees in the Sovryn system. All fees are controlled by the governance mechanism and subject to change.

Trading and Liquidity Providers

Liquidity Providers can provide liquidity to the Sovryn Swap AMM. Unlike most other AMM's, such as Uniswap, LP's are not required to deposit both assets into a pool, they can add only one or both. Sovryn Swap uses oracles to rebase the ratio between tokens, eliminating most of the possibility for "impermanent loss". Sovryn Swap collects a fee on each side of the swap, which is distributed to the LPs. Currently this fee is set at: 0.1%

Fees collected by the Sovryn Protocol

The Sovryn protocol collects a fee on each trade that is performed. This fee is currently set to: 0.15%

Lending and Borrowing

The interest rate paid by borrowers to lenders is set dynamically based on supply and demand - the ratio of supply to loans.

The Sovryn protocol collects an origination fee on every loan, currently set to 0.09% Interest paid to Lenders

Interest payments made by borrowers are distributed to lenders. The Sovryn Protocol collects 10% of interest for the insurance fund, which exists to protect lenders in the possible case of a loan defaulting.