Static Fee

Note for DEX Teams:

This mechanic is a part of a Dynamic Fee Plugin. It utilizes classic Fee Tiers & Ticks combinations (in this example: 0.05%, 0.3% & 1%).

The exact Tiers & Ticks can be tuned by dex according to the needs of each pool.

An Example of User-Oriented Description

Swap Fee Distribution

Swap fees are distributed proportionally among all active liquidity positions at the time of each trade. When the market (spot) price moves outside a position’s selected range, that liquidity becomes inactive and temporarily stops earning fees. Once the price returns within range, the position becomes active again and resumes fee generation.

Fee Collection & Reinvestment

Fees earned from swaps are not auto-compounded. Instead, they accumulate separately from the main pool liquidity and must be manually claimed by the LP via their LP Token. This design provides flexibility and supports integrations with advanced liquidity management strategies.

Customizable Pool Fee Tiers

When creating a pool, user can choose from preset fee tiers when initializing a new pool, depending on the expected volatility and behavior of the token pair:

• 0.05% fee, tick spacing 10 — Best suited for stable pairs with minimal price fluctuation.

• 0.3% fee, tick spacing 60 — Balanced default option for most token pairs.

• 1% fee, tick spacing 200 — Ideal for volatile assets or launch-phase tokens with high anticipated trading activity.

Note: Tick spacing defines how granular the price intervals are within a pool. For instance, a tick spacing of 60 represents a ~0.6% difference between each successive tick, which affects how precisely LPs can set their price ranges.