weiWard Network Fees
All rewards paid by the weiWard platform are denominated exclusively in ETH.
The weiWard platform necessarily imposes variable and static fees throughout the user experience. Due to the extreme volatility of ETH gas prices, liquidity providers and minters - parties incurring ETHtx exposure risk to substantiate the weiWard platform - must find sufficiently attractive risk/reward dynamics to remain committed participants. As exhibited in traditional equities markets, high volatility assets impose premiums on asset holders to invite and protect market makers (liquidity providers). weiWard is not exempt from the dynamics high volatility assets exhibit and has modeled itself after similar products in traditional equities markets.
ETHtx transaction fees are applied as a flat 2.5 percent on all ETHtx transactions occurring on the Ethereum main network. While the weiWard platform imposes ETHtx redemption fees, the redemption fees do not provide sufficient economic incentives for liquidity providers, minters, and the weiWard platform generally.
Further, transaction fees create an opportunity for the weiWard platform to consistently reduce its outstanding liabilities in the number of outstanding ETHtx tokens. Continuously removing ETHtx from circulation has the effect of reducing outstanding liabilities for the weiWard AMM.
Last modified 4mo ago
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