Mimicry charges traders an exit fee, and 100% of these fees are redistributed to liquidity providers and market sponsors.
Players may mint Mimes to open positions without any fees. However, players who open one-sided positions will be charged a small exit fee whenever they remove liquidity from their positions. Liquidity providers who open two-sided positions will not be charged fees. Exit fees are set by each market's sponsor will vary from market to market, but generally they will fall between 0.0% – 1.0%.
Initially, 100% of exit fees will be subsidized by the Mimicry Protocol.
Once exit fees are activated, Directors will retain some portion of revenue generated by Pantomimes, and the remaining portion of fees will be paid to Producers who provide liquidity.
Similar to Uniswap, we anticipate that at some point in the future our DAO community may vote to send a portion of exit fee revenue to the Mimicry Foundation’s treasury in an effort to support ongoing software development grants, bug bounties, charitable grants, and the general health of the ecosystem.
A second stream of potential protocol revenue is from Pantomime advertising. Directors may compete using an auction model for promotional advertising space within the Mimicry Marketplace GUI. Initially 100% of this revenue will be used for community rewards and, similar to exit fee revenue, someday a portion may instead be routed to the Mimicry Foundation treasury.
All tips Producers and Actors pay for balancing and automation efforts will be retained by Balancers with no revenue share to the protocol.