Dynamic Swap Fee Mechanism
Below is an explanation of how dynamic swap fee is determined.
The pool's price before swap is equal to the price before the first swap of the block. Thus, every swap uses this reference price for the pool's price before swap.
Below are a few examples of dynamic swap fee for ETH/USDC pool.
Price before Swap
Price after swap
Execution price
Dynamic Swap Fee
2000 USDC
2200 USDC
2080 USDC
$120 (6%)
2000 USDC
1999 USDC
1999.02 USDC
$0.02 (0.0002%)
2000 USDC
1999 USDC
1999.6 USDC
$0.6 (0.03%)
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