Sliding Fee

Note for DEX Teams:

This plugin helps distinguish between arbitrageurs and regular users, adjusting fees accordingly. It allows to significantly increase profitability compared to the classic fee mechanics, ranging from 2–10% per unit of invested liquidity by capturing more revenue from arbitrageurs while maintaining competitive fees for casual users.

Can be tuned per pool to strike a balance between user fairness and LP profitability. Customize it per pool using your parameters and make sure to reflect current logic in your frontend.

Available via Plugins Marketplace: https://market.algebra.finance/plugin/sliding-fee/

User-Oriented Overview:

This fee logic adjusts the cost of your swap based on market movement and your trade direction:

• Swaps in the direction of price momentum (e.g. price rising, and you're buying) may have a slightly higher fee.

• Swaps against the trend could be cheaper.

This discourages exploitative arbitrage and rewards regular users who are not front-running the price. For liquidity providers, this means higher returns, as the system is designed to capture more value from arbitrage trades without penalizing most users.

📈 Fees are calculated based on recent trades and market shifts.