Deposit Fees & ChronoLock Management
A summarized version of our plan to ultimately reach 0% deposit fees
One of the protocol’s goals is to become a major Decentralized Exchange (DEX) on the Fantom network for the main pairs.
In-line with our core vision to become a disruptive and dominant DEX on the Fantom chain, we have developed the following plan below for how the protocol will operate in its early cycle regarding deposit fees (and how we will decrease them to zero overtime).
The team will focus strongly on development and usage of the DEX in order to accrue swap fees high enough to support reasonable dividend distributions daily. As the swap fees generated increases from more Fantom users discovering and using the ProtoFi DEX, we will curb deposit fees.
From launch, the deposit fees for native tokens will be X% and the deposit fees for non-native tokens will be Y%. The fees collected will be largely redistributed to ELCT holders.
While we will hold off on disclosing the exact methodology and criteria for us decreasing deposit fees and lock-up periods, we can say that the adjustments will be closely monitored and will be adjusted when the one-day average ROI for a specific farm/pool makes staking not worth the time and effort to manage to recover the fee. The same process will be utilized for determining lock-up periods.