Fee Split and Giveback Loop

Overview

Comet Swap uses a single swap fee that the trader pays to the pool (based on the fee tier). That total fee is then allocated across two buckets:

  • LP Fee Earned by active (in-range) liquidity providers.

  • Protocol Fee Protocol profit - 100% used for ASTR buybacks and Boost distribution to ASTR stakers.

Fee Split

For an input amount amountIn and fee tier feeTierBps:

totalSwapFee=amountInfeeTierBps10,000 \text{totalSwapFee}=\text{amountIn}\cdot\frac{\text{feeTierBps}}{10{,}000}

The swap fee is then split into:

lpFee=totalSwapFeelpShare\text{lpFee}=\text{totalSwapFee}\cdot\text{lpShare}
protocolFee=totalSwapFeeprotocolShare\text{protocolFee}=\text{totalSwapFee}\cdot\text{protocolShare}

Protocol Fee Policy and Boost Funding

Comet Swap’s Collective-driven policy is:

  • 100% of protocol fees (protocol profit) are used for ASTR buybacks

  • 100% of bought-back ASTR is distributed to ASTR stakers as Boost

This is the Comet Giveback Loop:

Protocol usage → Protocol profit → ASTR buyback → Boost distributed to ASTR stakers

The intent is that value created by trading activity flows back into Astar through ASTR, reinforcing the staking economy.

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