In DeFi, every percentage matters, especially when it comes to maximizing your profits. At Krystal, we’re committed to empowering users by continuously innovating the tools and services we provide. This holiday season, we are excited to announce a significant update to our fee model – a gift to our valued users.
Gone are the days of paying automation fees based on the entire value of your position. With our newly introduced Automation Fee Model, fees are now tied directly to the profits you earn. Simply put: if there are no profits, there are no fees. For more details, let’s dive in!
What’s Changing?
Previously, our automated features such as Auto Rebalance, Auto Compound, and Auto Exit were subject to an automation fee of 0.1% of your position value. While seemingly minimal, this structure could significantly impact users managing large portfolios, ultimately eating into their profits.
Starting December 24th, we are implementing a more user-friendly fee structure. The new Automation Fee will be 2% of the Performance Fee, charged only on the profits you earn from providing liquidity.
This change enhances the user experience not only on Krystal but also across various decentralized exchanges (DEXs) like Uniswap, PancakeSwap, QuickSwap, SushiSwap, Thena, and Camelot. Our platform’s support for these DEXs ensures that you can seamlessly leverage liquidity provisioning with reduced fees, maximizing your profits across multiple blockchain networks.
Fee Structure Comparison:
- Old Model: 0.1% of Position Value
- New Model: 2% of Performance Fee
Why the Update?
At Krystal, our users are our top priority. We understand that impermanent loss (IL) poses significant challenges for liquidity providers, and we’re committed to helping you navigate these hurdles effectively. One key to achieving a successful liquidity provision strategy is minimizing fees.
Based on your feedback, we recognized the importance of transitioning to a performance-based fee model. This approach allows greater flexibility in strategy development while ensuring your principal investment remains untouched. With the new model, we only charge a small percentage of the profits you earn, aligning our success with yours. This change fosters transparency and empowers you to focus on maximizing returns with peace of mind.
Example: The New Fee Model in action
Let’s consider a user with an auto-rebalance set up for their $10,000 ETH-USDC liquidity pool position. The user earns $100 in fees, while the position value remains constant.
| Old Model | New Model | ||
|---|---|---|---|
| Original Position | Liquidity Value | $10,000 | $10,000 |
| Fee Generated | $100 | $100 | |
| Automation Fee | $10 (0.1% of Position Value) | $2 (2% of Performance Fee) | |
| New Position | Liquidity Value | $9,990 | $10,000 |
| Fee Generated | $100 | $98 |
As illustrated, the new fee model results in significantly reduced costs – up to 5 times lower fees, based on this scenario.
How to Switch to the New Automation Fee Model
Transitioning to the new fee model is quick and straightforward. If your automation setup qualifies for this update, you can begin enjoying lower fees in just a few steps:
- Visit Krystal’s Website: Log into your wallet and navigate to the automation section.
- Initiate Migration: Click the “Progress Migration” button on the pop-up notification.
Once the migration is complete, your automation setup will be updated to the new, more cost-effective fee model.
For more information, visit: Krystal’s website
We hope this updated Automation Fee Model enhances your experience with Krystal, making your liquidity provisioning journey smarter and more profitable. If you have any questions or feedback, our team is here to support you.
Let’s work together to make your DeFi journey as rewarding as possible. Here’s to smarter strategies and greater success!
