DYNAMIC FEES

HOOKED! supports an oracle-driven fee system that can adjust dynamically to market conditions. Instead of relying solely on static fee tiers, pools can be configured to optimize fees using real-time data on volume, volatility, and liquidity depth. This ensures traders receive competitive pricing while liquidity providers capture fair compensation for risk.

Unlike traditional fixed-fee models, HOOKED!'s dynamic fee approach is designed to protect traders and strengthen liquidity across all market conditions. Fee caps can be configured as needed for different pool types. For stable, low-volatility pairs, lower caps can be set to guarantee cost efficiency for common trades. As conditions change, fees adjust upward in a controlled manner, preserving protocol integrity and protecting against MEV extraction during volatility spikes or flash crash scenarios.

This dynamic fee system works in conjunction with HOOKED!'s REHYPED liquidity mechanism. Even when swap fees are low (as is common with stablecoins), liquidity providers continue earning yield from external lending markets, ensuring sustainable returns regardless of trading volume. This dual-revenue model allows HOOKED! to maintain competitive fees for traders while still providing attractive yields for LPs.