What is the Interface Fee Podcast

Understanding the Interface Fee on Goblins Protocol

The Goblins Protocol imposes an Interface Fee of 0.25% on most token swaps. This fee is crucial for supporting the ongoing development, marketing efforts, and operational costs of the platform. By contributing to these areas, the fee ensures that the Goblins Protocol remains sustainable and continues to grow.

Exemptions

There are specific scenarios where the fee does not apply:

  • Stablecoin Swaps: When swapping between stablecoins that are tied to the same underlying asset (such as USDT to USDC), the Interface Fee is waived. This exemption makes stablecoin swaps more cost-effective for users who frequently engage in these transactions.
  • BCH to Derivative BCH Wraps: The process of wrapping Bitcoin Cash (BCH) into Wrapped Bitcoin Cash (WBCH) or other BCH derivatives is exempt from the Interface Fee. This exclusion is designed to facilitate smooth transactions within the Goblins ecosystem, especially for users who need to convert their BCH into the SEP-20 compatible WBCH or other BCH derivatives.

Important Considerations

  • Visibility of Fees: Before confirming a transaction, the Interface Fee is clearly displayed in the swap detail section. This transparency allows users to see exactly what they will be charged before proceeding with their swap.
  • Payment of the Fee: The Interface Fee is deducted from the output token, meaning it is taken from the token you will receive after the swap. This ensures that the fee is seamlessly integrated into the transaction process.

Tips for Users

  • Review Fees: Always take the time to review the swap details to understand the fees involved. This can help you avoid any surprises and plan your transactions more effectively.
  • Leverage Exemptions: Be aware of the specific exemptions where this fee does not apply, such as in stablecoin swaps or BCH to Derivative BCH wraps. By taking advantage of these exemptions, you can optimize your swapping strategy and minimize costs.

Conclusion

Understanding how the Interface Fee works on the Goblins Protocol is essential for making informed decisions when swapping tokens. By being aware of the fee structure, exemptions, and how fees are applied, you can better manage your transactions and take full advantage of the features offered by the platform.