This page provides an overview of the revenue streams flowing in and out of ParaSwap. It provides clarity on the revenue structure for integrators and helps our users better understand the business model.
ParaSwap currently operates with no fee: there is no additional markup taken on swaps while interacting directly with the service. Users exchanging tokens on paraswap.io only face the cost of broadcasting a transaction on the Ethereum network (gas costs).
ParaSwap can either be used directly, through our website paraswap.io or accessed through a third party integrating with the service:
On ParaSwap.io, there is no extra markup.
It's up to the services integrating with ParaSwap to decide if they want to charge a commission on the swaps facilitated. ParaSwap takes a portion of this fee (default 15%).
The ParaSwap API streamlines the collection of a fee, if desired, thanks to the Revenue Sharing contract.
There's another potential fee to consider, called "positive slippage". The decentralized markets are always on the move. Sometimes, competing transactions can push the price lower (or higher) after the first transaction was submitted. ParaSwap implements several mechanisms to hedge for it, such as displaying the the "Minimum Received" amount, or securing prices for a set amount of time with ParaSwapPool.
So what happens with the positive slippage then? Some services extract 100% of the positive slippage for themselves, but ParaSwap is more community-oriented.
By default, ParaSwap collects 50% of the positive slippage to be used to further grow and perpetuate the protocol.
Third-party services, such as wallets, can easily integrate with ParaSwap using the API. They can control the fee structure of their integration with the revenue sharing smart contract.
If they chose so, they can charge a commission on the swaps they facilitate. When an integrating service uses this feature, 15% of the revenues collected (by default) are shared with ParaSwap.
The fee structure is dynamic for ParaSwap: ParaSwap receives 15% of the fees collected by the partner. The partners are free to set their fee to any value through an admin contract where they're the only ones in control.
The partner can also decide what to do with the positive slippage: as described above, ParaSwap takes 50% of it by default, if the partners chooses not to charge a fee or keeps it < 0.5%. It leaves the other half to be used as best suited to the partner's interest.
0% to 0.5%
Share of positive slippage for ParaSwap
Share of positive slippage for Integrators
The Revenue Sharing contract streamlines the fee setup and collection process.
The options offered by the Revenue Sharing contract are virtually endless, depending on the specifics of the project integrating ParaSwap:
Sharing back to token holders?
Half to Gitcoin, half to boost the token's liquidity mining budget?
Minimal/no fees + positive slippage back to the users to be the most competitive price-wise?
First, in case that's not clear, let's be explicit: any type of fee taken by ParaSwap is taken on a share of the positive value generated by the service.
So if ParaSwap can't beat the market --- it takes no fee. ParaSwap is here to add value, so it's only fair to fuel its growth with a fraction of the value delivered daily.
ParaSwap is built with love by a growing team. Our team provides support to all services integrating with ParaSwap, even if they decide to take no fee on the service (-> ParaSwap fee = 0).