💰Fee Structure

Adjust after Merkl integration

As ZERO features concentrated liquidity pools exclusively, the fee tier will vary from pair to pair.

If both tokens of a liquidity pool's pair are whitelisted by Stabl Labs to be staked in gauges and receive $oZERO emissions rewards, the liquidity providers of that pair will not receive swap fees. The profits expected by the liquidity providers staking on gauges are solely derived from $oZERO emissions.

In contrast, veZERO holders who vote to incentivize a particular gauge with emissions will receive swap fees from the liquidity pair that they voted for. This creates the incentives for veZERO lockers to vote for the gauges that produce the highest volume in swap fees. The amount of fees earned by veZERO holders depends on the pool that they vote for. Trading fee distribution is as follows:

Pools -

• 78.33% fees to veZERO voters

• 13% to concentrated liquidity ALMs if the user did not take a manual position (CL pools only)

• 8.67% sent to Overcollateralization (OC) Treasury to increase the yielding power of $CASH

Through this mechanism, the system provides veZERO holders with the power to incentivize swap fees instead of total liquidity. The destination of $oZERO emissions is in the hands of the lockers.

If a liquidity pool is not whitelisted to be staked in the gauge, it will receive all the swap fees it generates but have no $oZERO emissions.