Watt Protocol
  • 👋Welcome
  • Manifesto
  • Contribution
  • 💥Protocol overview
    • Liquid staking for tokens
    • Volatility farming
      • Arbitrage opportunities
      • Volatility farming flywheel
    • Watt assets
      • Token ratio
      • Watt token specification
    • Liquidity pools
    • User actions
    • Fee structure
      • Burn rate
    • Amplifiers
    • Guides
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  1. Protocol overview
  2. Fee structure

Burn rate

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Last updated 2 months ago

Make sure you understand how the works before exploring the Burn rate.

Burn rate indicates how incurred fees are split between burning liquid-staked Watt tokens and rewarding liquidity providers in the Watt token pool. For example, if the Burn rate is set at 40% for a certain token, this means 40% of eligible fees are dedicated to burning Watt tokens, while the remaining 60% of eligible fees are distributed among liquidity providers in a Raydium pool.

Increasing the Burn rate favours Watt token holders, whereas decreasing the Burn rate favours liquidity providers.

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Token ratio