It is well known that trading on a decentralized exchange incurs two types of fees:
- Trading Fee: Charged by decentralized exchange on all trades.
- Gas Fee: Charged by the Ethereum network on all Ethereum transactions.
According to our programming, our system(Token-Based Fee Reimbursement & Reward System) will use ETHERCToken(EET) to reimburse users for the fees(including trading fees and gas fees) at a fixed ratio and the entire process is fully automatic powered by smart contract. In a word, after each trading transaction completed, market takers will receive some EET tokens as the reimbursement for fees and market makers will also receive EET tokens as a trading reward. We can thus build an active and healthy ecosystem for trading on our exchange. More importantly, when gas consumption can be reimbursed, a higher gas price can be set for each transaction, which means that each transaction can be completed faster. Just to make things clearer, the below chart shows how the system works:
IMPORTANT NOTICE: The Token-Based Fee Reimbursement & Reward System will be released and deployed on Ethereum mainnet in early June.