We explain the operating structure of Supreme Finance and the core concepts of swaps and operations of HypeX.
HYPEX is an independent Governance Token issued by Supreme Finance. HYPEX will be used for all Supreme Finance policy decisions, DeFi Pool and NFT Staking purposes.
A small liquidity provider fee is taken out of each trade and added to the reserves. While the ETH-ERC20 reserve ratio is constantly shifting, fees make sure that the total combined reserve size increases with every trade. This functions as a payout to liquidity providers that is collected when they burn their pool tokens to withdraw their portion of total reserves. Guaranteed arbitrage opportunities from price fluctuations should push a steady flow of transactions through the system and increase the amount of fee revenue generated.
With Uniswap, 0.3% of all trading fees in any pool are proportionately distributed to the pool’s liquidity providers.
With Sushiswap, 0.25% go directly to the active liquidity providers, while the remaining 0.05% get converted back to $SUSHI and distributed to the $SUSHI holders.
With Supreme, 0.25% goes directly to the active LPs of the pool, and 0.05% gets split with a 7:3 split amongst $HYPE holders and original $HYPEX holders.
Structure of Trading fee