The Key to Love Is Understanding — Trading Fee Distribution Explained
A 0.3% transaction fee is charged on all trades made on Love Boat Exchange. A breakdown of how the transaction fees are distributed is provided below:
- 0.25% is given to LPs
- 0.04% is given to xoLOVE holders
- 0.01% is to maintain the protocol
0.25% to Liquidity Providers
Most of the transaction fee will go directly to the community members providing liquidity for any given trade on Love Boat. The 0.25% fee is allocated proportionally to how much a user’s funds comprise any given pool.
0.04% to xoLOVE token holders
LOVE token holders can earn 0.04% out of the 0.30% trading fee by staking their LOVE tokens in the XOLOVE contract. When you stake your LOVE in this contract, you receive xoLOVE tokens in proportion to the amount you deposit. When you burn your xoLOVE tokens, you receive the LOVE you originally deposited PLUS the trading fees, earned as LOVE tokens.
0.01% to protocol maintenance
The smallest allocation of our transaction fees will go to maintaining the Love Boat Exchange protocol. This value not only helps us to maintain high standards of user experience as our community grows but will also help us to innovate. Love Boat Exchange will be a multichain solution and will look for robust treasury management tactics to provide as much value to our community as possible. Our goal is to surprise you with new reasons why you love to use our product.