Follow every fee.

A single fee asset#

Both directions charge fees on the fee-free USDG leg q. This makes protocol revenue USDG-denominated without a background worker liquidating stock inventory. The selected pool's immutable fee settings determine the actual rate.

totalFee = ceil(q × swapFeeRate)
protocolFee = floor(totalFee × protocolShare)
lpFee = totalFee − protocolFee

Stock sale:     trader receives q − totalFee USDG
Stock purchase: trader pays     q + totalFee USDG

The local example uses a 0.30% total fee and a 20% protocol share of that fee. An 80/20 split refers to fee ownership, not to reserve ownership or a split of the trader's entire payment.

Reserve movements#

actualStockBalance ≥ accountedStockReserve
actualUSDGBalance ≥ accountedUSDGReserve + accruedProtocolUSDG

The invariant reads accounted LP reserves only. When protocol fees are collected, the protocol liability and actual USDG balance decrease by the same amount. LP reserves and total LP supply must remain unchanged.

Exact USDG-input budgets#

For a USDG budget, the quote finds a fee-free leg q that fits q + ceil(q × feeRate) within the budget. The stock output is rounded down. Any unused amount remains unspent or is returned according to the transfer path; it is never silently classified as a fee.

The total fee rounds upward in USDG's smallest unit. The protocol portion rounds downward, with the remainder assigned to LPs. Small trades therefore have a different effective percentage after integer rounding; the displayed token amounts matter more than a rounded percentage label.

VANTA staking is a later phase#

The broader design proposes distributing collected protocol fees among active VANTA stakers, treasury, and operations. This build does not issue VANTA, implement vVANTA staking, stream rewards, or enable a claim button. Collecting a pool fee does not itself create a funded staking distribution.

These proposed shares apply after the separate LP/protocol trading-fee split. There is no promised APR. An unfunded period would produce no new rewards. Stock price appreciation, LP principal, donations, and launchpad sale proceeds cannot be renamed recurring trading revenue.