# Dynamic Pricing Structure

To optimize liquidity provisioning, we implement a \*\*dynamic fee structure\*\* that adjusts based on trading activity. The fee rate $ f $ is determined as:

**f = fbase + λ V / Vavg**

Where:

* **fbase:** Base fee rate (e.g., 0.3%).
* **λ:** Sensitivity parameter.
* **V:** Change in trading volume over a given period.
* **Vavg:** Average trading volume over the same period.

This ensures that fees increase during periods of high volatility, discouraging excessive speculation and stabilizing the market.


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