> For the complete documentation index, see [llms.txt](https://docs.algebra.finance/algebra-integral-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.algebra.finance/algebra-integral-documentation/user-guide-template-for-dexes/concentrated-liquidity-and-modular-architecture-basics/fee-mechanics/dynamic-fee-based-on-trading-volume.md).

# Dynamic Fee Based on Trading Volume

{% hint style="info" %}
**Note for DEX Teams:**

This plugin can drive loyalty and retention by implementing VIP programs.

Be sure to integrate user-facing logic to explain tiered discounts and eligibility.

Available via **Plugins Marketplace**: <https://market.algebra.finance/plugin/dynamic-fee-based-on-trading-volume/>
{% endhint %}

### User-Oriented Overview:

Some pools may use a **VIP-tiered system** where **frequent traders pay lower fees**. The more you trade over time, the better your status—just like a loyalty program.

* Your on-chain trading history is verified automatically using ZK technology.
* If eligible, your swap will execute with a **discounted fee**, reflecting your current tier.

You can check your current VIP status **before swapping**—the interface will show your tier and any available benefits.

> 🔐 This process is fully decentralized and requires no login or trust in a third party.