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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