All fees are set through DAO voting. They increase with rising volatility according to a special formula. This formula allows fees to be adapted based on liquidity depth, demand, and volatility. Fluid can also redistribute a portion of the fees to the protocol to support development and incentives.
Dynamic fees automatically change with market conditions. For example, in the USDC/USDT pool, fees range from 0.003% to 0.01% depending on the price deviation from 1.0, following a 3x²–2x³ curve, which ensures stability and fair trading.
When the protocol's annual revenue reaches $10 million, an algorithmic buyback program is launched using the x * y = k model to strengthen the $FLUID token price.
