The True Cost of DEX Trading: How BSX Redefines Efficiency

TL;DR

1. Minimal Exchange Fees: At BSX, pay only 0.06% for takers and 0.02% for makers — significantly lower than the typical 0.1% at other DEXs. Keep more of your profits with our lean fee structure. Market makers and institutional traders will enjoy lower fee of 0.025% for taker and -0.005% for maker. Please reach out to the team for more information.
2. No MEV: Trade with confidence knowing BSX eliminates hidden MEV fees that can skew trade outcomes, ensuring a level playing field and transparent transaction costs.
3. Zero Gas Fees for Limit/Market Order: Experience seamless trading without the burden of gas fees on swaps. BSX cuts the cost of trading, which is especially advantageous during periods of network congestion.
4. The Best of Both Worlds: Enjoy the combined advantages of centralized and decentralized exchanges with BSX’s hybrid model

In DeFi, DEXs have been hailed for their promise of seamless and secure peer-to-pool transactions. Yet, the allure of these platforms is often tarnished by overlooked expenses that can easily erode away your trading profits: Gas fees, Miner Extractable Value (MEV) fees, and Exchange fees.

[Cover Graphic with text “Breaking Down the Cost of DEX Trading]

Let’s dissect the maze of DEX costs and discover how BSX is the emerging solution of efficiency in Perpetual DEX trading

Deciphering DEX Costs

Let’s dive into the three main types of fees every DEX trader needs to know:

• Gas Fees: The term ‘gas fees’ are the transaction charges paid to miners/validators for processing trades on the blockchain.

Their amount is as volatile as the crypto themselves, fluctuating with network congestion. Imagine planning a budget-friendly road trip only to find gas prices have doubled overnight — that’s the unpredictability traders face with these fees.

• MEV Fees: Then there’s the shadowy figure of MEV fees, an additional toll extracted by miners/validators by reordering, inserting, or censoring transactions within blocks.

On one hand, MEV can lead to nefarious activities like front-running, where MEV Searchers place their transactions ahead of yours for profit, leaving you with less favorable trade execution. On the other hand, MEV makes a more efficient blockchain.

• Exchange Fees: Finally, we have the exchange fees, which are straightforward but no less significant. Some DEX charges a 0.1% exchange fee, a seemingly small amount that, over time, can greatly accumulate.

[infographic of the 3 above, just logo+gas fees/mev fees/exchange fees, no need to go in detail, triangle shape]

Cumulatively, these fees can impose a burden on traders. High gas fees can erode profits, especially for those playing the HFT game or operating with thin margins.

MEV fees add a layer of unpredictability and potential exploitation, while exchange fees are the constant drip that can drain even the most carefully managed reservoirs of capital.

For the small-scale trader, these fees can be prohibitive. Stifling the democratized vision that DEXs were built upon.

How does BSX fit in the picture?

Here’s how we imagine BSX fits in crypto trading landscape:

• Lower Exchange Fees: With taker fees set at 0.06% and maker fees at 0.02%, BSX ensures more of your profits stay where they belong — in your wallet. Please reach out to us if you are institutional traders and enjoy lowest fee tier.
• Hybrid Exchange Advantage: But BSX doesn’t stop there. As a hybrid exchange, it melds the best features of centralized systems — speed and lower costs — with the trustless nature of decentralized platforms.
• No MEV Fees: BSX addresses the MEV by eliminating such fees altogether.
• Gasless Transactions: By adopting the hybrid way, we are pioneering a system where swapping is gasless when doing limit order. Taker order will have a minimal, fixed sequencer fee to offset the spiky gas cost.
• Traders only encounter gas fees during deposits and withdrawals, making every other transaction as smooth and enabling easy onboarding.

[graphic explaining 4 above, square, each point representing logo+text like above]

Imagine Trader X, who makes a high-frequency of trades, each order or swap, they have to pay gas fees, hidden MEV fees, and exchange fees.

On other L2 perp dex, a multiple $10,000 trade could cost $1–2 in exchange fees, plus gas and potential MEV costs.

On BSX, that same trade’s fee is slashed to $0.6, with no MEV fees and no gas fees if it’s a maker order. Multiply this saving across the spectrum of trades, and the difference to Trader X’s bottom line becomes substantial.

The only fees BSX users pay are gas fees when taking order, depositing, and withdrawing USDC, which involve sequencer fees. Because BSX is built on Base, which already implements EIP-4844, the cost of depositing and withdrawing is in cents region.

Over the course of a year, the savings accrued from BSX’s lower fee structure can compound significantly.

Active traders could reinvest these savings into additional trades, magnifying their potential returns without being penalized for the frequency of their transactions.

Concluding Thoughts

By reducing the excessive fees that have long burdened DEX users, BSX stands as an example of efficiency in the industry, a platform where the true cost of trading is both transparent and manageable.

As we peel back the layers of trading costs, it becomes clear that the path to maximizing returns lies not just in fighting your way in the trenches but also in the obvious selection of where users should trade.

Let’s build the future together — join our effort to forge the best perpetual futures exchange with superior liquidity and safety for all.

🌐 Website: www.bsx.exchange

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