Originator Fees

Originator Fees

Memswap offers built-in fee mechanisms that make it easy for apps / wallets to collect fees when their users swap. There are two options:

  1. Fixed Fee

Configure a fixed bps percentage fee that is collected from the total swap amount

  1. Surplus

When a swap returns more than the expected amount (due to solvers competing, or favorable AMM price movement), apps can decide how much of this “surplus” is collected as a fee vs returned to the user.

One promising fee design that this enables is for apps to take dynamic fees, abstracting the complexity of slippage away from users. E.g. instead of charging a 0.5% fee, while also setting a 0.5% slippage, the app could set 0% slippage, and collect the surplus as a fee. This way, the user gets a clean guaranteed price, while the app absorbs the complexity of slippage into it’s fee revenue.