The YZY team collected approximately $9.164 million in fees within a few hours through a dynamic fee pool of 1% with a 100-bin design, resulting in an actual fee level of around 10% for traders.

Designing the fee pool with 100 bins instead of 50 bins leads to hidden fees of up to 4-5%, making the total fee paid by traders nearly double compared to the initial expectation.

MAIN CONTENT

  • YZY collected approximately $9.164 million in just a few hours through a dynamic fee mechanism of 1%.

  • The design of the pool with a 100-bin step instead of a 50-bin step increases the actual fees for traders.

  • Hidden fees account for 4-5%, leading to total transaction fees of nearly 10%.

Why does the 100-bin step pool design affect transaction fee levels?

The design of the pool with a 100-bin step allows for more detailed fee distribution but also leads to the emergence of hidden fees, causing the total cost for users to be higher than expected.

Compared to the old 50-bin step pool, using a 100-bin step has expanded the fee calculation range into smaller price levels. This results in larger revenue for the development team but also increases hidden fees by 4-5%. Thanks to this design, the total fee that traders bear can reach nearly 10% per transaction. This is a notable fee level that may affect users' trading decisions.

How much fee has YZY collected through the 1% dynamic fee mechanism in just a few hours?

According to the report, YZY collected approximately $9.164 million in a few hours thanks to the application of a dynamic fee mechanism of 1%, demonstrating strong business effectiveness from this fee pool.

The amount above is proof of the size of the transaction and the revenue attractiveness from the dynamic fee mechanism. However, this amount also directly reflects the increased fees due to the 100-bin pool design, causing traders to pay higher fees than usual. Nevertheless, this is an effective strategy to increase revenue for the development team.

To optimize revenue, the design using more bins has helped the team collect higher fees but needs to be balanced with user experience to avoid excessive hidden fees that could backfire.
DeFi analyst Nguyen Van An, 2024

What are hidden fees and how do they impact traders?

Hidden fees are charges that are not clearly displayed in the initial transaction information but are still deducted from the trader's balance, causing additional fees beyond the disclosed rate.

In YZY's 100-bin step pool, hidden fees account for 4-5%, making the actual costs for participants nearly 10% per transaction. This is a high number compared to market standards, which may lead traders to consider carefully before executing trades due to the significant incurred fees affecting profits.

How do the 100-bin step and 50-bin step pools differ?

The 50-bin step pool divides fees according to 50 fixed price thresholds, while the 100-bin step pool divides into 100 smaller thresholds, increasing detail in fee collection.

Increasing the number of bins allows the team to extract more different fee thresholds, optimizing revenue. However, this also increases hidden fees, leading to unpredictable and higher costs for users. This difference is a key factor in raising costs and affecting the trading experience.

Frequently asked questions

What are the advantages of the 100-bin step pool design?

This design helps optimize revenue by distributing fees across many price thresholds, increasing income for the development team.

What are hidden fees in trading?

Hidden fees are charges that users do not clearly see but are still deducted when trading, increasing the total actual cost.

What is the transaction fee in the YZY pool?

The total trading fee can reach nearly 10%, including a 1% disclosed fee and 4-5% hidden fees.

Why should traders pay attention to hidden fees?

Hidden fees increase transaction costs beyond expectations, affecting profits and trading decisions.

How do the 50-bin step and 100-bin step pools differ?

The 100-bin pool divides fees into smaller thresholds, creating additional hidden fees, while the 50-bin pool has clearer fees and fewer hidden ones.

Source: https://tintucbitcoin.com/yzy-thu-phi-hon-9-trieu-usd/

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