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Stakenet DEX — Fee Structure

An important element for anyone to understand when using a DEX is what are the fees that are applicable to me? As it’s often a consideration that many traders take into account, alongside the available liquidity, when they choose an exchange to trade on. Here we will go through these key points relating to the Stakenet DEX.

Do I need to own XSN to use the DEX?

No. You do not need to purchase any additional currency to allow you trade on the DEX. The only coins you need to own are the coins you want to use to trade on the DEX.

Deposit and Withdrawal Fees

There are no additional fees applied when you send or withdraw funds from your Multi-Currency Light Wallet (LW) as these funds belong to you and you alone. You are able to fully adjust the network fee used for withdrawing your currencies.

The DEX is built into the LW, as such; any funds you hold in your LW can be used to trade on the DEX interface.

Lightning Channel Fees

The only fees applicable when opening a Lightning Channel are the standard blockchain network fees, so no additional fees will be imposed on the user either. You are able to fully adjust the network fee used for opening your Lightning Channels.

You might be wondering, what is the difference then on whether I use Atomic Swaps or Lightning Swaps?

With Atomic Swaps, you pay the standard blockchain network fees per transaction which can get expensive if you plan on doing multiple swaps however; with Lightning Swaps, you pay a one-off fee to open your Lightning Channel and then you can perform as many swaps as you want over the Lightning Network using your channel balance, and then close the channel to return your funds.

As an example, if you performed 100 Atomic Swaps, you would be subject to 100 different network fee charges for each of those swaps, whereas with Lightning Swaps, you can swap as much as you like using your channel balance and only be subject to one network fee which is for opening your channel.

Don’t think using the Lightning Network is for you? We will provide future support for Atomic Swaps within the DEX so users can choose which type of swaps they want to use in order to suit their needs.

Opening A Lightning Channel is as simple as this:

Channel Rental Fees

It is often the case that you send one currency to an exchange in the hopes of trading it for one or more different currencies. If this is the case, then this is the section for you:

With the DEX, you can send your chosen currency and open a Lightning Channel with it. Once opened, you can then rent an additional channel in the currency you want to trade.

To give you a clearer picture, say you’ve sent over your BTC to your wallet and you’re in the mood for buying LTC but you don’t have any of that. You can use some of the balance within your BTC channel to rent a LTC Lightning Channel which will allow you to receive LTC over the Lightning Network.

That sounds pretty cool, but what’s the cost to me? The cost of renting a channel is related to how much capacity you want that channel to have and how long you want the channel for. The DEX will charge you 0.004% per hour, based on how much you want that channel to be able to receive. In addition to this, there is a one-off network transaction fee that is applied at the same time as renting the channel. This is the same fee that is applicable if you were to send a transaction.

So if you rent a channel with a capacity of 1 LTC and you want it for a couple hours. This means that you will be charged 0.00008LTC and this will be converted into BTC at market rates (as you are choosing to use your BTC channel to pay for this rental), which would only be 0.000000372683568 BTC or $0.003410613672552.

Renting A Lightning Channel is as simple as this:

Trading Fees

When the DEX is launched, we will initially charge a 0.25% trading fee though this is subject to change, especially as more trading volume flows into the DEX.

A few quirks relating to this trading fee:

  • 10% of the trading fee will be used to purchase the currency XSN from the market automatically then that amount is burnt which effectively reduces the overall supply within the XSN economy and increases buy-pressure. *
  • Users who decide to run a Stakenet DEX Hub, can receive a majority stake of trading fees earned from their hubs.
  • Users who run a XSN Masternode can benefit from the fees earned by the DEX hubs once released to the Masternode Layer.

*To give you an idea in monetary figures, if the exchange had a daily volume of $1,000,000. The expected trading would be $2,500. We would then use 10%, $250, to purchase XSN from orderbook and burn this amount, everyday.

Want to find out the latest on the DEX or more information?

Find out more about what makes the Stakenet DEX special and how we are breaking down entry barriers? Find out in this article: https://medium.com/stakenet/stakenet-light-wallet-update-v-2-8-6-9ff18ebe5915

Find out more of how we are pulling liquidity from Centralised and Decentralised Exchanges to our Dex? Find out in this article: https://medium.com/stakenet/stakenet-dex-multi-exchange-trades-7193243f0c13

For more information, updates, and news follow us on Twitter or join the Stakenet Discord.

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Stakenet revolutionizes the way cryptocurrencies are held, spent and staked.

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