Fees

Fee Process: Hammer Finance employs an intelligent fee process that considers the trailing gas price for each connected chain. This approach optimizes gas price and cost, reducing transaction weight. Outgoing transactions are funded using the gas stored in each chain's base asset pool. For instance, the BTC pool covers Bitcoin fees, while the ETH pool covers Ethereum fees. The network subsidizes the final gas cost by utilizing reserve assets, such as HAMMER, replenishing each pool accordingly.

Value Capture and Resource Subsidization

Fees play a crucial role in access control, enabling Hammer Finance to manage demand for its limited liquidity resources. By adjusting fees based on the liquidity required for transactions, Hammer Finance leverages market forces to maintain a balanced ecosystem. This approach ensures efficient allocation of resources while fostering a fair and accessible platform for users.

Access Control and Market Forces

Hammer Finance's fee structure captures value and ensures fair compensation for liquidity providers. By subsidizing resources such as disk, CPU, network, and memory, Hammer Finance supports the seamless operation of the protocol. The fee structure aligns with the principles of resource subsidization, creating a sustainable ecosystem for all participants.

Benefits beyond Transaction Costs

Hammer Finance's fee structure offers several additional benefits beyond eliminating transaction costs. It safeguards against dust attacks, allows for income accumulation post-Emission Schedule reduction, and provides users with a stable fee structure that is not subject to external network fee fluctuations. These benefits enhance user experience and contribute to the overall stability of the Hammer Finance ecosystem.