The Hummus Hangout #2: Introducing a New Fee Distribution Strategy
The Hummus Exchange team is introducing a new fee distribution strategy in order to foster an improved, sustainable economy.
TL;DR
- Currently, fees from swaps go directly back to LP holders.
- Soon, these fees will be distributed between veHUM holders, LP holders, and the protocol treasury.
- Users who support the protocol by staking stablecoins and $HUM will be rewarded in a far greater, creamier way.
New Distribution, Same Creamy Hummus
The Hummus Exchange allows ultra-low slippage stablecoin swaps and yields on staked stablecoins. These yields are affected by the amount of stablecoins staked as well as the amount of HUM tokens staked and the length of time for which they have been staked. Yields are paid in $HUM, funded by the fees taken in-kind and paid by the traders’ swaps. (Learn more about how the Hummus Exchange works in our earlier article.)
With the protocol and the entire Metis ecosystem growing quickly, the Hummus Exchange team will soon adjust fee distribution to ensure a healthy protocol economy.
It will work as follows.
Portions of fees received by the Hummus Exchange protocol will soon be distributed in three ways:
- To veHUM holders via a monthly $METIS airdrop;
- To LP holders; and
- To the protocol’s treasury.
This means that users who support the protocol by staking stablecoins and $HUM will be rewarded in a far greater way.
The details of these changes will be shared soon. In the meantime, users can take advantage of the opportunity to position their portfolios with the future of the Hummus Exchange — and some very creamy yields — in mind.
Can It Get Even Creamier?
The community spoke and The Great Hummus listened: dip will beget dip. The great people of Metis shall not be disappointed with what we have in store for them.
You won’t want to miss Hummus Hangout #3 👀
Why Metis is Perfect for Hummus
Metis has developed an “Optimistic” rollup solution to bundle and sequence transactions on the layer above Ethereum and then send that data back as one transaction to the Ethereum Layer 1 main chain. In doing so the Metis Network is able to offer extremely fast transactions that take just a few seconds and cost just a few cents, while still maintaining the security of the Ethereum network.
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