NFT-Based Fee System
The Nacho Partnership
Zealous Swap has established a strategic partnership with Nacho to integrate their popular NACHO KAT NFTs collection (10,000 unique NFTs) as the cornerstone of our innovative fee system. This collaboration brings together Nacho's established NFT community and Zealous Swap's DeFi infrastructure, creating mutual benefits for both ecosystems.
Dual-Fee Structure
NACHO KAT NFT holders: 0.2% swap fee (33% discount)
0.17% to liquidity providers
0.03% to protocol treasury
Standard users: 0.3% swap fee
0.25% to liquidity providers
0.05% to protocol treasury
Technical Implementation
Our implementation maintains the mathematical integrity of liquidity pools while providing preferential fees to NFT holders:
All trades interact with the same unified liquidity pool
Fee differentiation occurs at transaction execution, not pool calculation
The constant product formula (x * y = k) remains unchanged
Encouraging Whale Activity & Arbitrage
The fee discount creates powerful incentives for larger traders and arbitrageurs:
Whale-Friendly Economics: Large traders (whales) benefit significantly from the 33% fee reduction, incentivizing them to bring substantial liquidity and trading volume to the platform
Enhanced Arbitrage Opportunities: When price discrepancies between markets fall within the 0.1% fee differential, NFT holders gain exclusive arbitrage opportunities that non-holders cannot profitably execute
Market Efficiency: These privileged arbitrage opportunities lead to tighter spreads, more efficient price discovery, and reduced price dislocations across the Kaspa ecosystem
Natural Price Floor: The ongoing economic benefits create a natural price floor for NACHO KAT NFTs, as their utility directly translates to quantifiable trading advantages
Additional NFT Benefits
Beyond trading fee discounts, NACHO KAT holders will enjoy:
Future governance participation
Potential token airdrop eligibility
Whitelist access to future Zealous ecosystem products
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