Protocol/LP fee restructuring #378
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pileks
changed the title
- properly increase sequence number - Check for square root edge case due to floor/ceil square rooting - Implement basic div_ceil for target reserves calculation, favoring the protocol for the one-off fee take
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Restructures how AMM swap fees are distributed and adds a mechanism to extract accumulated liquidity as protocol fees.
Fee redistribution: Changed the taker fee split from 0.25% LP / 0.25% protocol to 0% LP / 0.5% protocol. All swap fees now go directly to the protocol rather than being added to LP reserves.
New
collect_lp_feesinstruction: Allows the MetaDAO multisig to withdraw liquidity from the spot AMM down to a specified target K value while preserving the current price. This addresses a gap in the previous design where LP fees were added to pool reserves but never tracked separately—making them indistinguishable from initial liquidity.Mechanics
The
collect_lp_feesinstruction reduces pool reserves proportionally to maintain the price ratio:Where K is current liquidity (x×y), K' is the target liquidity, and x'/y' are the new reserves. The difference (x - x', y - y') is transferred to the caller.