Dynamic Fees
All protocol fees in the Bronto ecosystem are distributed according to this streamlined model:
100% to veBRONTO holders - Those who lock their tokens receive all generated fees, creating true protocol ownership.
Dynamic Fee Algorithm
Bronto implements a sophisticated dynamic fee mechanism that responds in real-time to market conditions. Unlike static fee models, Bronto's fees adjust automatically to optimize for both liquidity provider profitability and trader experience.
A pool can be dynamically adjust to have max fee of 3%.
- Fees are increased during the period of high volatility to maximize the profits for LPs.
- Fees are decreased during the period of stability to attract more volume.
Fee Split
Bronto offers flexible fee-split configurations that can be customized per pool based on governance decisions. The default fee distributions are structured as follows:
Gauge | No Gauge |
---|---|
100% to veBRONTO | 0% to veBRONTO |
0% to Liquidity Providers | 90% to Liquidity Providers |
0% to Protocol | 10% to Protocol |
By default, Protocol takes 10% of the fees generated by the unstaked liquidity of the pool but can be customized by the governance.