Protocol Fees
Last updated
Last updated
In order to incentivize high-quality project launches, the Bazaar protocol charges a tiered protocol fee on swaps and sale proceeds. Curated launches on Bazaar enable a fixed fee of 0.50% on swaps and 2.00% on total sale proceeds. Permissionless launches, which are not vetted by the Bazaar team or community, incur a standard 1.00% on all swaps and 3.00% on total sale proceeds. In the future, protocol fees may be adjusted and updated according to governance.
For projects, only the quote token proceeds (i.e. USDC, ETH) are deducted when withdrawing the liquidity from the liquidity bootstrapping pool once the sale has ended.
Protocol XYZ (a curated launch) raises 3,000,000 USDC and generates $6,500,000 in trading volume, which results in $37,500 worth of accrued swap fees. This accrued swap fee consists of both the sale token, $XYZ, and the quote token, $USDC. When protocol XYZ withdraws liquidity once the sale has concluded, the curated sale fee of 1.00% is incurred on the pooled quote token balance.
| Launch Type | Swap Fee (User) | Sale Fee (Project) |
|---|---|---|
Curated Launch
0.50%
2.00%
Permissionless Launch
1.00%
3.00%