Dynamic Fee Structure

• As transfers occur, excessively one-sided demand can cause pool imbalances, with high liquidity in well-liked source pools and low liquidity in pools with strong demand as destinations. Bridge transfers won’t succeed in these situations unless the liquidity is balanced again.

• Hence we use the dynamic fee model by hyphen (opens in a new tab). In this model the transfer fee is determined by pool available liquidity, pools are independent of external AMMs, and native bridges are not required to carry out rebalancing.