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.
Charged for any transaction involving mint or burn. For native to native swaps, this fee will only be applied on the incoming mint.
Charged for every mint or burn
Charged by the miners of the respective blockchain.
Ethereum gas fee
Charged by the Ethereum network to execute the smart contract. The fee varies depending on the network congestion and complexity of the transaction.
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)