⛽Gas-free Swaps
Last updated
Last updated
Traders pay two types of fees when using a DEX: Gas fees for the network and exchange commission for the DEX. While the latter is reserved for the protocol treasury, gas fees are required for preventing malicious actors from spamming the chain, and incentivizing nodes to create blocks.
Mangata allows traders to save money by only charging a single fee: Because Mangata is an appchain, the rules of the chain can be changed and it’s possible to remove the gas fees altogether. Mangata utilizes the exchange commission as spam protection and eliminates the gas fee.
For swap transactions involving a whitelisted token pair (against MGX), and the trade value above a certain threshold (10,000 MGX) the no-fee mechanism applies.
For swap transactions with a value lower than the threshold, a locking mechanism is used where a certain amount of MGX tokens (50 MGX per transaction) are locked on the user’s balance for 24 hours.
If a user sends another transaction during the lock period, the locked amount and the time period are increased. Tokens can be unlocked through either a swap transaction or a free, designated unlock extrinsic.
