Economics
The fee
Every swap pays 2 basis points of its input (SWAP_FEE_PPM = 200).
| Part | Share of the fee | Goes to |
|---|---|---|
| LP fee | 75% | Liquidity providers, by band, by fee weight |
| Protocol share | 25% (PROTOCOL_SHARE_PPM) | Buys DOME on the open market and burns it |
The burn, worked
| Volume | Fees | Burned in DOME value |
|---|---|---|
| $100,000 | $20 | $5 |
| $1,000,000 | $200 | $50 |
| $100,000,000 | $20,000 | $5,000 |
The burn runs through two permissionless calls: convert_fees turns fees held in any coin into the burn coin inside the pool, then buy_and_burn buys DOME in the configured Raydium CP-Swap pool and burns all of it. Config.orbit_burned and Config.quote_spent count the totals on chain.
Before launch nothing has burned. The site shows zeros until the first swap.
Who earns what
Fees are split across bands in proportion to how much each band trades. Interior bands earn on their full depth; a pinned band earns on its rim depth (Band.sigma), because it only trades the coins that have not fallen.
A narrow band near $1 needs far less capital for the same depth, so per dollar deposited it earns more while prices stay near $1. It stops earning on the falling coin once that coin passes its edge.
Why both sides show up
- Traders: one hop between any two dollars, with depth from every band at once, instead of routing through pairwise pools.
- Liquidity providers: they choose how close to $1 they stand. A narrow band is the most efficient place for stablecoin capital; a wide band earns from every swap and carries more depeg risk.
Choosing a band
| Band | Good for |
|---|---|
| $0.999 to $0.99 | Highest efficiency, coins you trust to hold the peg |
| $0.98 to $0.90 | Room for a wobble |
| full | Earns at every price, carries the most risk |