Protocol Fees

We apply a commission fee exclusively upon the withdrawal of LP tokens from our protocol and withdrawing with unwrapping LP tokens. The commission is calculated as follows:

$$fee = CDTAmount * feeRate / FeeBase$$

Where feeRate is a predetermined percentage of the commission fee, that is a publicly available variable in the SynthFactory contract. FeeBase is a constant that equals 10000, so feeRate can be in the range 0 to 10000.

Our commission calculation framework is designed with flexibility to accommodate the diverse landscape of pools and protocols:

• The general formula for commission: We've developed a universal commission calculation formula to address the variability across different platforms.

• Custom commissions system:

  • For instances where an SID does not have an assigned custom commission rate, the system defaults to the general rate specified in the SynthFactory contract.

  • When an SID is assigned a custom rate, this specific rate is utilized in the commission calculations, overriding the general rate.

This structured approach to commission management ensures that our system can adapt to various needs, maintaining flexibility in commission sizing across different scenarios.