🛃Protocol Fees

MTVSwap includes a 0.2% protocol fee that can be turned on and off. If turned on, this fee would be sent to a feeTo address specified in the factory contract. A pre-specified address — feeToSetter — can call the setFeeTo function on the MTVSwap factory contract, setting feeTo to a different value. feeToSetter can also call the setFeeToSetter to change the feeToSetter address itself.

If the feeTo address is set, the protocol will begin charging a 5-basis-point fee, which is taken as a 1/6 cut of the 30-basis-point fees earned by liquidity providers. That is, traders will pay a 0.20% fee on all trades; 75% of that fee (0.15% of the amount traded) will go to liquidity providers, and 25% of that fee (0.05% of the amount traded) will go to the feeTo address.