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Understanding the Fee Structure of THORChain for Swaps and LPs

Using THORChain for swaps and liquidity pool (LP) deposits/withdrawals involves several fees: **A) On-chain Fees** include an inbound fee for your transaction or instructions, paid from your wallet with the appropriate gas token (like BTC, ETH, etc.). There is also an outbound fee where THORChain deducts a portion of your assets (approximately 1.5 to 3 times the fast transaction gas fee) to cover the on-chain outbound transaction costs. The protocol balances the gas fees for cost-efficiency and protocol solvency. **B) Slip Fee** depends on your swap size relative to the liquidity pool's depth, with larger swaps incurring higher fees. This fee also applies to asymmetrical LP deposits and withdrawals and varies based on whether Streaming Swaps (minimum 5bps slippage) are used. **C) Network Fee** is a flat 0.02 RUNE, automatically deducted from the amount you receive and added back to the protocol reserves for rewards. **D) Affiliate Fee** is not charged by THORChain itself but by the interface or frontend you use, with variable rates. Additional resources and detailed guides are available for deeper understanding.
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AI Analysis

THORChain’s fee structure is designed to maintain network operations, incentivize liquidity providers, and ensure protocol sustainability. The on-chain fees, both inbound and outbound, are closely tie...

AI Recommendation

If engaging with THORChain for swaps or LP activities, it is advisable to account for all fees beforehand. Using fee comparisons and simulation tools can help estimate total transaction costs, especia...

Disclaimer

The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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