Currently, VarenX charges a 0.05% fee on any transaction involving a mint or burn. For native to native swaps, this fee will only be applied on the incoming mint. These fees are collected in a multi-sig wallet owned by the Varen DAO. Collected fees by VarenX will be converted into VRN and periodically distributed into the governance vault, meaning 100% of VarenX protocol fees to go VRN governance vault stakers
RenVM (RenBridge) charges 0.15% per mint and 0.15% burn. (Please note that those fees are set by Ren and can change at any time)
There is also a network fee that is required to pay the miners of the respective blockchain. This fee is set dynamically (in real-time) based on network congestion. It goes to Miners, not to the Varen or Ren teams.
And there's also an Ethereum gas fee, which varies depending on network congestion.
A user wants to swap 1 BTC for LUNA using VarenX. High-level, they are going to be charged the following fees:
- Mint fee for renBTC (0.15%)
- ETH GAS for swapping renBTC for renLUNA
- Burn fee for renLUNA (0.15%)
- Network fees on BTC and LUNA networks (dynamic fees depending on networks congestion)
- VarenX protocol fee (0.05%)