ZooDex transaction fee

Every token swap transaction within a DEX built on uniswap v2 protocol takes 0.3% as a fee. Fee distributed in following ratio:

0.25% goes to LP 0.05% goes to Exchange

Our goal is to use earned fees as a price boosting mechanism for ZOO. We will market buy & provide liquidity for ZOO-FTM pair each month using fees we earned as the Exchange. This way we can sustain stable growth of ZOO token price & make another incentive for people to hold it.

In ZooDex we can set custom distribution ratio. There are 3 choices:

1. 0.20% will go to liquidity providers and 0.10% added as ZOO LP - this way we increase the ZOO token price faster, but make people more vulnerable to IL.

2. 0.28% will go to liquidity providers and 0.02% added as ZOO LP - this way we make people more safe from IL (safer than any existing swap), but we will do less impact on ZOO price as we will have lesser amount to buy & provide liquidity from.

3. We are leaving it as default 0.25% - 0.05% and losing a possibility to provide incentive for either ZOO price or liquidity providers

My additional thoughts:

I consider ZooDex as a starter dex for providing initial liquidity for just launched tokens on opera. Official liquidity shouldnt be suffering from IL as it is not meant to be pulled and sold in a fair scenario.