YZY Liquidity Pool Generates $10 Million in Fees Within Hours

YZY developers’ liquidity pool produced $9.16 million in fees within hours by utilizing a 1% dynamic fee structure and increasing Bin Steps to 100, resulting in nearly 10% trader costs.

Summary

YZY developers’ liquidity pool earned approximately $9.16 million in fees within hours, based on a 1% dynamic fee structure and 100 Bin Steps configuration. This design led to traders incurring nearly 10% in total fees, with 4–5% hidden costs. The 100 Bin Steps setup significantly impacted the implicit fee rate, making it more costly for traders to enter and exit positions.

Terms & Concepts
  • Liquidity Pool (LP): A collection of funds locked in a smart contract that facilitates decentralized trading by providing liquidity to exchanges.
  • Bin Steps: A configuration parameter in automated market makers that affects price ranges and fee structure, influencing trading costs.
  • Trader Fee Rate: The percentage of trade value charged as fees when entering or exiting positions within a liquidity pool.