Fee Components
- Gas Fees
- Context: Payment to blockchain validators for processing each transaction step.
- Typical Range: Fluctuates based on network congestion, transaction complexity, and current gas prices.
- Implementation: Aarc bundles bridging, swaps, and final calls into a batched transactions, reducing the total number of approvals and manual steps.
- Liquidity Provider (LP) Fees
- Context: Cost to DEXes, aggregators, or bridge providers facilitating asset swaps and transfers.
- Typical Range: Often 0.05%–0.3% depending on the asset pair and selected route.
- Implementation: Deducted from the swapped or bridged amount. We always aim to minimize these costs.
- Max Slippage
- Context: This provides a buffer against price changes between quote generation and transaction confirmation.
- Typical Range: A typical slippage might be 0.2%, balancing execution finality with capital efficiency.
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Implementation:
- Price Impact
- Context: The effect of trade size on market price, particularly for large trades or lower-liquidity pairs.
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Implementation:
- Note: Aarc’s aggregator logic seeks routes with minimal price impact, though market-driven changes cannot be completely eliminated.
Fee Transparency
Before executing a deposit or other transactions, users can review fee details and confirm the transaction, ensuring there are no hidden surprises. Aarc provides a clear breakdown of:- Amount and Token to be sent
- Amount and Token to be received
- Estimated LP Fees
- Estimated Gas Fees
- Estimated Price Impact
- Maximum Slippage