Fees & Economics

Understanding Deriverse's fee structure, rebates, and economic incentives designed to benefit both traders and liquidity providers.

Fee Philosophy

Deriverse's fee structure is designed to:

  • Reward Liquidity Providers: Competitive maker rebates

  • Enable Governance: Community control over fee parameters

  • Optimize Capital Efficiency: Prepayment discounts for active traders

  • Align Incentives: Fee sharing with DRVS token holders

Base Fee Structure

Standard Fees

All fees are subject to governance and can be adjusted by DRVS token holders:

Market Type
Base Taker Fee
Governance Control

Spot

Governance Parameter

Perpetual Futures

Governance Parameter

Traditional Futures (v2)

Governance Parameter

Options (v2)

Governance Parameter

Example: Base taker fee might be set to 5 basis points (0.05%)

Maker Rebates

All liquidity makers are eligible for rebates:

rebates_rate = rebates_ratio × base_fee_rate

Parameters:

  • rebates_ratio = 0.125 (hardcoded at launch)

  • base_fee_rate = governance parameter

Example Calculation:

base_fee_rate = 0.0005 (5 bps)
rebates_rate = 0.125 × 0.0005 = 0.0000625 (0.625 bps)

Benefits for Makers:

  • Immediate rebate on filled orders

  • Encourages liquidity provision

  • Scales with trading volume

  • Transparent, on-chain calculation

Fee Discount Program

Prepayment System

Traders can deposit up to $50,000 USDC to receive significant fee discounts:

Maximum Discount: 75% of base taker fee Prepayment Period: 3 months lock-up Fee Deduction: Fees automatically deducted from prepayment

Discount Formula

The discount is calculated based on prepayment amount:

Condition 1 - Partial Prepayment:

If fees_prepayment < prepayment_for_max_discount:
fees_discount = 0.75 × (fees_prepayment ÷ prepayment_for_max_discount)

Condition 2 - Full Prepayment:

If fees_prepayment ≥ prepayment_for_max_discount:
fees_discount = 0.75 (75% discount)

Example Scenarios

Scenario 1: $25,000 prepayment (assuming $50,000 threshold)

  • Discount: 0.75 × (25,000 ÷ 50,000) = 37.5%

  • Effective fee: 5 bps × (1 - 0.375) = 3.125 bps

Scenario 2: $50,000 prepayment

  • Discount: 75%

  • Effective fee: 5 bps × (1 - 0.75) = 1.25 bps

Revenue Distribution

Fee Allocation

Platform revenues are distributed according to the following priority:

  1. Maker Rebates: Paid to liquidity providers

  2. DRVS Stakers: Remaining fees shared proportionally

  3. Insurance Fund: Liquidation penalties (perpetual futures)

Staking Rewards

DRVS token holders earn platform revenue through staking:

Distribution Method:

  • Automatic, on-chain distribution

  • Pro-rata based on staked amount

  • All rewards paid in USDC

  • No minimum claim amount

Revenue Sources:

  • Net trading fees (after maker rebates)

  • Liquidation penalties

  • Other protocol revenues

Economic Incentives

For Traders

Active Traders:

  • Prepayment discounts up to 75%

  • Lower costs for high-volume trading

  • Predictable fee structure

Market Makers:

  • Consistent rebates on provided liquidity

  • Atomic quote replacement tools

  • Lower gas costs per trade

For Token Holders

DRVS Stakers:

  • Share in protocol revenue growth

  • Governance voting rights

  • Aligned with platform success

Long-term Holders:

  • Benefit from increased trading volume

  • Participate in protocol evolution

  • Passive income generation

Special Programs

Referral Program

On-chain referral system with transparent rewards:

Structure: Single-tier referrals only Currency: All rewards in USDC Settlement: Automatic on-chain distribution

Referrer Benefits:

  • Pro-rata share of referee trading fees

  • Immediate reward posting

  • Transparent blockchain tracking

Referee Benefits:

  • Up to 10% discount on taker fees

  • Applies to all trading venues

  • Immediate activation

Governance Parameters

Key variables controlled by DRVS holders:

Parameter
Description
Impact

Program Duration

Length of referral program

Incentive period

Link Validity

Referral link expiration

User acquisition window

Max Discount

Maximum referee discount

Cost savings

Rewards Ratio

Referrer reward percentage

Incentive strength

Fee Transparency

On-chain Tracking

All fees and rebates are:

  • Calculated transparently on-chain

  • Immediately visible in transaction logs

  • Verifiable by any participant

  • Integrated with account balances

Real-time Updates

  • Fee calculations update with each trade

  • Rebates applied immediately

  • Discount status visible in account

  • No hidden fees or charges

Economic Model Benefits

For the Protocol

Sustainable Revenue:

  • Governance-controlled fee optimization

  • Multiple revenue streams

  • Aligned stakeholder incentives

Growth Incentives:

  • Referral program drives adoption

  • Fee discounts encourage volume

  • Maker rebates increase liquidity

For Users

Predictable Costs:

  • Transparent fee calculation

  • Governance-controlled changes

  • Multiple discount opportunities

Aligned Interests:

  • Lower fees benefit all participants

  • Revenue sharing with community

  • Democratic fee setting process

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