Fee structure

As Horiza features concentrated liquidity pools exclusively, the fee tier will vary from pair to pair.

If both tokens of a liquidity pool's pair are whitelisted by Horiza to be staked in gauges and receive $oHRA emissions rewards, the liquidity providers of that pair will not receive swap fees. The profits expected by the liquidity providers staking on gauges are solely derived from $oHRA emissions.

In contrast, veHRA holders who vote to incentivize a particular gauge with emissions will receive swap fees from the liquidity pair that they voted for. This creates incentives for veHRA lockers to vote for the gauges that produce the highest volume in swap fees. The amount of fees earned by veHRA holders depends on the pool that they vote for. Trading fee distribution is as follows:

Pools -

• 70 - 85 % fees to veHRA voters

• 20 - 5 % fees to hraNFT stakers

• 10% sent to Horiza Treasury to increase the yield for voters

Through this mechanism, the system provides veHRA holders with the power to incentivize swap fees instead of total liquidity. The destination of $oHRA emissions is in the hands of the lockers.

If a liquidity pool is not whitelisted to be staked in the gauge, it will receive all the swap fees it generates but have no $oHRA emissions.