Dynamic vs Static Fees: What Makes KSWAP.APP Different

Hello Hives,
We believe you are already aware of our latest swap service, KSWAP.APP. (If you wish to read the introduction to KSWAP.APP, please click here).
Initially, we had set the maximum swap fee for KSWAP.APP at 0.45%. However, we understand that some people might feel that KSWAP.APP is not worth trying due to this high fee. Therefore, we have decided to remove the average (base) fee (0.05%) that we previously introduced, and we have also reduced the dynamic coefficient from (0.4%) to (0.3%) for a limited time.

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The difference between Static & Dynamic fees

Uswap.app and most of the Hive-based swap services are based on static (fixed) fees. For example, Uswap charges a fee of 0.09% and BeeSwap charges 0.25%.
However, we have introduced the dynamic coefficient concept for swap services with Kswap.app. Therefore, you can experience a very low fee when the bridge is balanced. When the bridge is unbalanced and the less liquid side of the bridge provides you with an opportunity to earn more than what you swapped (up to 0.3% rewards).
The same concept might apply to the bridge when it is unbalanced and you wish to swap from the high liquidity side. In this scenario, you might pay a maximum fee of 0.3%. However, in most cases, you will pay a lower fee than with most other swap services.

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Not Always The Max Fee

Example 01:- Hive to Swap.Hive

According to the Kswap.app UI screenshot above, you can see the minimum expectation while the bridge is mostly balanced (around 15K on each side). When you swap Hive in this condition, you can earn an extra reward, which is mentioned at the 'Expected Fee' section. Based on the above screenshot, you can earn a 0.001% reward (0.01 Hive) while swapping 1000 Hive.

Example 02:- Swap.Hive to Hive

This example shows us the second scenario: when you swap 1000 Swap.Hive to Hive when the bridge is mostly balanced, you can see the 'Expected Fee' for the swap is around 0.021% (0.209 Hive). That means you won't pay the 0.3% maximum fee when the bridge has enough liquidity, and these figures represent the lowest swap fees under these liquidity conditions.

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Define Your Expectation

Unlike other bridge services, we provide you with a new mechanism to define your expected swap amount.

As shown in the example above, you can define your expected swap amount by sending a memo message.

The Kswap.app UI will roughly calculate this amount, which safeguards you during times of market panic when frequent swaps occur, preventing you from paying high fees if someone has already swapped before you. However, if you are willing to pay any fee (up to a maximum of 0.3%), you can set the minimum expectation to 0.000.

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The Formula

These figures (BASE_FEE, DIFF_COEFFICIENT) can vary depending on future requirements.

BASE_FEE = 0.000;
DIFF_COEFICIENT = 0.003;
diff = ((hive_to_swap * 0.5 + hive_in_pool) / (shive_in_pool + hive_in_pool)) - 0.5;

price = 1 - 2 * diff * DIFF_COEFICIENT;

shive_to_receive = hive_to_swap * price * (1 - BASE_FEE);

You can use a similar method to find the swap amount for "hive_to_receive" as well.

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Refund Process

Similar to the Uswap.app, we are using two refund strategies here. First, we are trying to make refunds through an automated mechanism. If that fails, we will process manual refunds.

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Contact Us

• @theguruasia's Discord Link - theguruasia#8947
• Kswap Support - Discord Channel

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If any error, please contact us @CORE-VAULT Discord Channel or send a discord message to theguruasia#8947.

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