Last Updated: July 24, 2018
New Fee Structure
DDEX's new fee structure will become effective on July 24, 2018 at 10pm (GMT+8, China Local Time). Details below:
Reduced Trading Fee For All Users:
- 0.05% trading fee, one of the lowest in all types of crypto exchanges.
Greater Fee Reduction For HOT (Hydro Protocol) token holders:
- 0.01% trading fee, only 1/10th of Binance's trading fee! To qualify as a HOT token holder, your wallet address simply needs to hold at least 100 HOT (Hydro Protocol Tokens).
Liquidity Incentive Programs
Additionally, we are releasing the following two exciting programs to provide more benefits to our users. We will provide updates on the exact release time as soon as we can.
Market Maker Rebate Program
This program provides all order "makers" on DDEX with effectively 0% transaction fees (not including gas fees) through batched order rebates.
What is an order maker?
- When you "make" an order on DDEX that is not instantly matched to another existing order, you are providing liquidity to the orderbook - this is called being an order "maker" (as opposed to an order "taker", who fills an existing order instantly and "takes" it off the orderbook)
How does the rebate work?
- When we launch this program, there will be a link to rebate all of your maker transaction fees in the "orders" section (order history)
- This rebate will include all transaction fees you've paid on DDEX as an order maker to date
- As long as your total maker fees are larger than the gas price required to send the WETH to your account, you can claim your rebate at anytime
Why not just set the transaction fees to 0 for makers directly?
- In short: we simply can't do this with our current settlement structure
- DDEX is a 0x relayer which runs the "matching mode"
- There are technical limitations on 0x's matching mode which inhibit us from being able to easily identify which orders are makers vs. takers when an order is initially placed (a single order could actually be both through multiple transactions!)
- Thus we cannot account for the appropriate fee % until after the order is matched
Why provide benefits to order makers?
- Typically exchanges structure their fees to give order makers a slight benefit over order takers to encourage a healthier trading environment
- Incentivizing order making will naturally yield a more "liquid" orderbook (larger, stronger, better) - this provides a superior trading experience for all of our users
- This benefits everyone!
Trading Volume Rewards Program
Our Trading Volume Rewards Program provides all of our users with monthly rewards for trading on DDEX based on their transaction volume.
How does this work?
- Each month we will tally the total transaction volume for each trading address in ETH
- Addresses will then be batched into pools based upon their transaction volume for that month (see the table below)
- The HOT rewards for the month will be split evenly between traders in each pool, according to the table below
|Monthly Trading Volume (ETH)||HOT rewards|
|Ξ30 - Ξ150||Split 10% monthly pool|
|Ξ150 - Ξ1000||Split 30% monthly pool|
|Ξ1000+||Split 60% monthly pool|
- Rewards will be available as long as the reward amount can cover the gas fee of transferring the rewards to your designated address.
- There's only one rule :) - any wash trading robots or other cheating mechanism is strictly prohibited. We reserve the right to freeze accounts that are in suspect of wash trading or cheating.
- The amount of HOT available each month will be announced in advance
We appreciate every user's willingness to trade with DDEX. Because Makers and takers are both essential to providing a fun and effective trading experience, we want to introduce HOT rebate program to ALL of our traders.
FAQ / Definitions:
What is Monthly Market Making Trading Volume?
On the last day of each month, we will do a full audit on our transaction records. Only successful, valid, on-chain transactions that are maker transactions will be counted as valid trading volume.
What is Trading Fee vs. Gas Fee?
While our platform does not charge any deposit/withdrawal fees, the small fees included in your transactions are the "gas fee" and "trading fee".
- The "gas fee" goes to the miners, who help power the flow of transactions on the Ethereum network. DDEX does not charge gas fee as a revenue source - this is simply the cost of performing transactions on the Ethereum blockchain. The gas fees are split between the order maker(s) and taker for a given order.
- The “Trading Fee”, or platform transaction fee, is charged by an exchange for matching orders. DDEX is greatly reducing the trading fee to 0.05% for all users and 0.01% to HOT token holders.
- We don't charge trading fees for placing or cancelling orders. We only charge fees when an order is matched and executed on chain.
You can see the current estimated fee for your order in the trade area, as shown in the picture below.
What is Maker vs. Taker?
When you place an order at the market price that gets filled immediately, you are considered a taker.
When you place an order which is not immediately matched by an existing order, that order is placed on the order book. If another customer places an order that matches yours, you are considered the maker.
When you place an order that gets partially matched immediately, you pay a taker fee for that portion. The remainder of the order is placed on the order book and, when matched, is considered a maker order.
How do you decide Monthly Rebate Pool?
The rebate pool will be different from month to month based on the token's market value. We will provide updates before we official release Market Maker and Trading Volume Rewards Program.
How do you charge gas fee on behalf of Ethereum Network?
DDEX is using the Order Matching strategy of 0x. For more information please refer to this excellent article. The relevant part is that the relayer transmits gas fees to the network (i.e., relayers (exchanges) transmit gas fees for users' trades in advance). In DDEX's model, we pass the gas fees back to the traders, which is included in the estimated trading fees.
Why am I not getting gas fee discounts as a market maker?
Originally we thought about being generous and simply subsidizing the gas fees for all of our users, especially market makers. Unfortunately, we discovered that this would open the relayer to attack: someone with 2 addresses could make a series of small trades back and forth, and the relayer would be drained of their Ethereum through gas prices. Therefore the relayer must pass the fee to the traders (preferably the taker, to be consistent with relayers running in Quote Provider mode).
The problem with the Order Matching mode is that at the time a limit order is created, the relayer does not know whether the order is going to end up being the maker or the taker, so the gas fee is currently symmetrically split between the maker and the taker.
Our team has talked with the 0x team, and is optimistic that a future version of 0x will allow Order Matching relayers to distinguish between takers and makers, and provide a better mechanism for resolving the gas fee issue.
We will update our fee policy frequently to ensure users have fully understood the fees in every transaction.
The DDEX Team