Dynamic fees

General

Dynamic fees are a flexible set of fees that exist in each token pair listed on BrewSawp. Importantly any user or team can make a liquidity pool on the BrewSwap DEX, each pool is created with the default BrewSwap fee structure of 0.30%.

Dynamic fees are three categories of additional fees that can be collected at each swap on of the token pair within the BrewSwap DEX. These additional fees are default set to 0.00% and can only be changed by the token owners of the pair or the BrewSwap team (multiple signature lock).

All dynamic fees are flexible, which means they can be adjusted at anytime.

Token taxes: Dynamic fees are an innovative solution to remove the need for tokens to carry their own tax logic. In every case, a token with taxes or a team will need to sell its own token for funding. Dynamic taxes remove this need by collecting fees directly with the swap contracts, relieving the pair of any downward selling pressure caused by team or contract token sales.

Token's without taxes: Dynamic fees also allow teams to deploy a pool on BrewSwap with a swap fee which may be more or less than other existing liquidity pools for the topic token.

Dynamic fee categories

There are three types owner fee categories set be set by token owners.

  • Owner fee, a fee made available to claim from the BrewSwap frontend by the token owner.

  • Staking/transfer fee, a fee transferred to a target address.

  • Referral fee, a fee made available to claim from the BrewSwap frontend by a nominated address.

Setting dynamic taxes

To set a dynamic tax, the token owner must access the add liquidity page of the BrewSwap, at which point additional dynamic tax settings will be made avaiable.

Before any dynamic taxes are set, the token owner MUST nominate ALL dynamic tax wallets.

The token owner can then adjust the rate of the dynamic taxes and nominate target addresses for dynamic taxes. Any changes in dynamic taxes will reflect on the user interface the next time a user makes a swap in the updated pair.

Dynamic tax ceilings

Each fee has a ceiling rate of 10.00% and a global ceiling of all taxes of 15.00%. Dynamic tax ceilings are in place to ensure that token owners cannot exploit their pools by setting egregious dynamic taxes.

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