🔃
AMM / Exchange
The HaloDeFi exchange allows users to swap any ERC20 token into any other ERC20 token through automated liquidity pools.
The liquidity provided to the exchange comes from Liquidity Providers ("LPs") who stake their tokens in "Pools". In return they get HLP (HaloDeFi Liquidity Provider) tokens, which can also be staked in the "Farm".
When users make a trade on the exchange they pay a 0.3% trade fee.
0.25% fee reward for LPs:
0.25% of this trade fee goes to the Liquidity Providers who provide liquidity for that pool. It is added to the pool balance.
If previously there were 100 HLP tokens representing 100 ETH and 100 HLP each token would be worth 1 ETH & 1 HLP.
If one user trade 10 ETH for 10 HLP, and another traded 10 HLP for 10 ETH, then there would now be 100.025 ETH and 100.025 HLP.
This means each LP token (HLP) would be worth 1.00025 ETH and 1.00025 HLP now when it is withdrawn.
0.05% fee reward for xHFI holders:
The remaining portion of the trade fee paid goes to a pool called xHFI. The xHFI contract collects the fees from all the pools, and when the reward distribution command is called, it then sells all the fees turning them into HFI (via HaloDeFi)
That new HFI is divided up among the users in the xHFI pool. When those users withdraw their xWings it will be worth more HFI than when they put in from the distribution.
Last modified 1yr ago
Copy link
Contents