Fees

A small set of fees is applied within the Pennysia ecosystem to ensure long-term sustainability, fair reward distribution, and continuous protocol development.

1.Swap Fee

A swap fee is charged on every token trade executed through a Pennysia market.

The fee rate is dynamically determined through weighted voting by liquidity providers (LPs) — each LP’s vote is weighted according to their share of the pool’s total liquidity.

• Fee Range: 0.1% – 0.5%
• Default Setting: 0.3%
• Optional Voting: Fee voting is entirely optional. LPs can choose a preferred fee rate when providing liquidity or adjust it at any time later. This flexibility allows users to optimize returns and hedge against impermanent loss, based on their personal market outlook or trading activity within the pool.

Directional Fee Logic

Each bucket defines its own fee rate. For example, in a BTC/USDT pool:

• Trades buying BTC (price of BTC rising) are subject to the fee determined by the bullish on BTC bucket.
• Trades buying USDT (price of BTC falling) use the fee from the bullish on USDT bucket.

Distribution

• 80% of collected swap fees are distributed among LPs proportionally to their liquidity share, and automatically compounded into their principal position.
• 20% is retained as a protocol fee.

2.Liquidity Fee

A liquidity fee is applied whenever an LP switches buckets (reallocates market bias) or withdraws liquidity.

The rate and calculation follow the same rule as the swap fee — determined by weighted LP voting, with optional user adjustment.

Distribution

• 80% of collected liquidity fees are distributed to existing LPs within the affected bucket, compounding automatically to their token value.
  • Example: if a user withdraws from the bullish on BTC bucket in a BTC/USDT pool, the fee is distributed proportionally to all LPs still in that same bucket.
• 20% is retained as a protocol fee.

3.Flashloan Fee

A fixed 0.1% fee is applied as a protocol fee.

4.Protocol Fee

The protocol fee serves as the foundation for maintaining and expanding the Pennysia ecosystem. It supports:

• Core team compensation and long-term sustainability
• Third-party audits and security services
• Partner integrations and ecosystem collaborations
• Marketing, operations, and R&D initiatives

📖 NOTE

Currently, Pennysia shares 50% of all protocol fees as part of the Deployer Incentive Program, empowering new projects to launch with built-in liquidity and sustainable revenue support. (See Deployer Incentive for more details.)