ONTON Fee Structure
ONTON Finance fee structure for AMM DEX users
AMM DEX Fee Structure
ONTON Finance employs an AMM (Automated Market Maker) model for its decentralized exchange (DEX), allowing users to swap tokens seamlessly. The platform offers a tiered fee structure that rewards users for holding and utilizing the native $ONTON token and locking it as veONTON.
Standard Fees
| Action | Fee |
|---|---|
| Swapping Tokens | 0.03% |
| Adding Liquidity | No fee |
| Removing Liquidity | 0.03% |
veONTON Holder Discount Tiers
Users who lock their $ONTON tokens as veONTON are eligible for discounts on swapping and liquidity removal fees based on the following tiers:
| Tier | veONTON Holdings | Discount |
|---|---|---|
| Tier 1 | 1,000 - 9,999 | 10% |
| Tier 2 | 10,000 - 49,999 | 20% |
| Tier 3 | 50,000 - 99,999 | 30% |
| Tier 4 | 100,000 - 499,999 | 40% |
| Tier 5 | 500,000 - 999,999 | 50% |
| Tier 6 | 1,000,000 and above | 66% |
To qualify for the veONTON holder discount, users must maintain the minimum balance of locked veONTON tokens for each tier at the time of the swap or liquidity removal transaction.
Discounted Fees for veONTON Holders
Based on the discount tiers, the discounted fee structure for veONTON holders is as follows:
| Action | Tier 1 | Tier 2 | Tier 3 | Tier 4 | Tier 5 | Tier 6 |
|---|---|---|---|---|---|---|
| Swapping Tokens | 0.027% | 0.024% | 0.021% | 0.018% | 0.015% | 0.010% |
| Removing Liquidity | 0.027% | 0.024% | 0.021% | 0.018% | 0.015% | 0.010% |
Liquidity Provider Rewards
Users who provide liquidity to the ONTON Finance AMM DEX are entitled to a portion of the trading fees generated by the platform. The distribution of fees to liquidity providers is proportional to their share of the liquidity pool.
For example, if a user contributes 10% of the total liquidity in a specific token pair, they will receive 10% of the trading fees generated by that pair. Liquidity providers who lock their ONTON tokens as veONTON will receive additional rewards and benefits.
Fee Distribution
The fees collected by the ONTON Finance AMM DEX are distributed as follows:
- 70% to veONTON Staking Holders through the buyback-and-make mechanism
- 20% to the ONTON Finance treasury for platform development and maintenance
- 10% to the ONTON Finance insurance fund to protect users’ funds
Advantages of the ONTON Finance Fee Structure
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Competitive fees: ONTON Finance offers competitive fees compared to other AMM DEXs, ensuring that users can swap tokens and provide liquidity at a low cost.
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veONTON holder benefits: By locking $ONTON tokens as veONTON, users can significantly reduce their swapping and liquidity removal fees, incentivizing the use and locking of the native token.
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Tiered discount structure: The tiered discount structure rewards users who lock more veONTON tokens with greater fee discounts, encouraging users to maintain larger holdings and actively participate in the ecosystem.
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Liquidity provider rewards: Users who contribute to the liquidity pools are rewarded with a share of the trading fees, creating a passive income stream for liquidity providers. Liquidity providers who lock their ONTON tokens as veONTON receive additional rewards and benefits.
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Platform sustainability: The fee distribution model ensures that the ONTON Finance platform can continue to develop and maintain its services while also protecting users’ funds through the insurance fund. The buyback-and-make mechanism rewards veONTON holders and contributes to the long-term sustainability of the platform.
By offering a competitive, rewarding, and tiered fee structure, ONTON Finance aims to attract users and liquidity providers to its AMM DEX, fostering a vibrant and sustainable ecosystem on the TON blockchain.
Comparing ONTON Finance Fees with Other AMM DEXs
When compared to other popular AMM DEXs, ONTON Finance’s fee structure stands out as competitive and rewarding for users.
For example, Uniswap, one of the most widely used AMM DEXs on the Ethereum blockchain, charges a flat 0.10% fee for swapping tokens. In contrast, ONTON Finance’s standard fee is only 0.03%, which is 70% lower than most of the AMM’s fee.
Furthermore, ONTON Finance’s tiered discount structure for veONTON holders provides an additional incentive for users to lock their ONTON tokens and actively participate in the governance and growth of the platform. This unique feature sets ONTON Finance apart from other AMM DEXs, which typically do not offer such discounts based on native token locking.
It is important to note that while ONTON Finance’s fees are highly competitive, users should also consider other factors when choosing an AMM DEX, such as liquidity, token availability, and user experience. ONTON Finance aims to excel in these areas as well, providing users with a comprehensive and user-friendly platform for swapping tokens and providing liquidity on the TON blockchain.
By combining competitive fees, a rewarding discount structure for veONTON holders, and a focus on user experience, ONTON Finance is well-positioned to become a leading AMM DEX in the rapidly growing DeFi ecosystem on the TON blockchain. The platform’s innovative buyback-and-make mechanism and commitment to long-term sustainability further differentiate ONTON Finance from its competitors, making it an attractive choice for users seeking a reliable and rewarding AMM DEX experience.