Introduction

• What is Affiliate Fees?

  It is made to create incentives for developers and developers simply can set their Affiliate address and the rate of fee they want for swap or LP

• What is a range of fee rate?

  From 0% to 10%

• What developers do with these fees?

  Swaps can be converted into RUNE and sent. Add Liquidity can be added as an LP alongside the affiliate

  
  \n

Method

• I chose THORWallet project in this analyzes, but you can use any affiliate address for any project with interactive tools in above of the dashboard to see their stats

• I used these tables for analyzes:

  flipside_prod_db.thorchain.swaps -- flipside_prod_db.thorchain.swap_events -- flipside_prod_db.thorchain.swap_events

  \

• for swap Affiliate Fees, I just converted the affiliate fee basis points to percent then multiply it by amount rune and USD that swapped, the result is Affiliate Fees

  \

• for LP Affiliate Fee, I find out that the affiliate transactions are alongside the main add liquidity transactions from users with the same tx_id except one is from users and one from affiliate address, so I separated them and calculated the fees that related to add liquidity

  \n

Conclusion

1. they charge affiliate fee in 2 ways :

   on swapping with fee rate from 0% (yeah, zero is possible) to 10%, or to add liquidity event with rate fee like swapping, but the mechanism is that the fee amount were added to the pools alongside the users

2. the affiliate fee rate (percent) on add liquidity event is higher but in overall is depending on amount not action

3. cumulative chart of paid fees has always maintained its upward slope (less in liquidity event) that show us that these affiliate fee program is alive and work until now

4. revenue they derived from this affiliate program on swap is 297.98K USD or 58.4K Rune and revenue they derived from this affiliate program on ADD LIQUIDITY event is 26.54K USD

Questions:

here, we aim to answer these questions:

1. What fee are they charging?
2. Does the fee depend on the action the user is taking at all?
3. How has it changed over time?
4. How much revenue have they derived from this affiliate program?

Thanks For your time

Discord: Abbas_ra21

Information:

1. revenue they derived from this affiliate program on swap is 297.98K USD or 58.4K Rune
2. The highest fee, either in dollars or runes, was received on December 27th with an approximate amount of $45.5K or 6.1K Rune
3. The cumulative chart of paid fees has always maintained its upward slope, and this is a sign of the dynamism of the platform.
4. With these data, we can conclude that this revenue create good incentives for platforms and developers

Information:

1. revenue they derived from this affiliate program on ADD LIQUIDITY event is 26.54K USD
2. The highest fee, was received on December 27th with an approximate amount of 13.65K USD
3. The cumulative chart of paid fees, has a very small upward slope recently and from that we can conclude that not many users like to add liquidity, specially in a large amount
4. here also we see There is an inverse relationship between the percentage of fee and the median added liquidity amount
5. in the add liquidity event unlike swap event, the percent may reach 10%

Information:article

As mentioned in this article, devs can use Dynamic Fees to adjust their fees base on amount of swap, so I decided to put the average affiliate fee percent with median USD volume together to observe the possible correlation between the both.

We can see clearly that when average fee percent touch the 1% the average Volume is very low like Feb 22, 2022

so we can conclude that if the amount of swapping for users is very low, the percent increase.

And when median of USD volume per day increase most of the time, the percent of fee decrease also

ADD LIQUIDITY event

Swap Event