Trading Fees

At Espresso Ex, trading operations are conducted with liquidity providers using the verified oracle price plus applicable fees for chosen assets. Espresso Ex facilitates multiple liquidity pools per asset, ensuring that trades are systematically executed against the pools with the lowest available fees first, moving on to higher-fee pools only when necessary.

For illustration:

Suppose Alice decides to trade 1000 USDT worth of ETH. If the liquidity pool with a fee of 0.05% holds 800 USDT and another with a 0.08% fee contains 5000 USDT. Alice's trade would first consume the 800 USDT from the 0.05% fee pool, followed by 200 USDT from the 0.08% fee pool to complete her transaction. This efficient fee-tiered matching system prioritizes lower-cost trades, enhancing value for traders and liquidity providers alike on the Espresso Ex platform.