Question

    Do fees on Osmosis differ when users swap to or from different tokens? On average, which tokens have the highest and lowest swap fees on Osmosis?

    Introduction

    TX Fees

    Transaction fees are paid by any user to post a transaction on the chain. The fee amount is determined by the computation and storage costs of the transaction. Minimum gas costs are determined by the proposer of a block in which the transaction is included. This transaction fee is distributed to OSMO stakers on the network. Validators can choose which assets to accept for fees in the blocks that they propose. This optionality is a unique feature of Osmosis.

    Swap Fees

    Swap fees are fees charged for making a swap in an LP pool. The fee is paid by the trader in the form of the input asset. Pool creators specify the swap fee when establishing the pool. The total fee for a particular trade is calculated as percentage of swap size. Fees are added to the pool, effectively resulting in pro-rata distribution to LPs proportional to their share of the total pool.

    Data Analysis

    Section 1. Swap From Side

    In the first step, 10 currencies are obtained, of which the 'swap from' them has the highest amount of fee or gas used per token unit.

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    Section 2. Swap to Side

    In the next step, 10 currencies are obtained, of which the 'swap to' them has the highest amount of fee rate or gas used rate per token unit.

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    Methodoloy

    We defined two variables as following:

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    If we divide the total volume of swaps(swap from or swap to) by the total fee paid in transactions related to the same swaps, we get a ratio that we called Fee Rate. This variable shows the fee for each token unit base on osmo. Similarly, if we replace 'Fee' with 'Gas used', the resulting variable shows the amount of gas used per swap for per token unit.

    In this dashboard, the following tables have been used to extract data:

    • osmosis.core.fact_swaps
    • osmosis.core.fact_transactions

    According to the charts above, when swapping(from) DHK currency, users have to pay about 1.09 microosmo per token unit, which is the highest fee rate among all currencies. DHK also has the highest gas used per swap for per token unit.

    Here is the same as before, when swapping(to) DHK currency, users have to pay about 0.795 microosmo per token unit, which is the highest fee rate among all currencies. DHK also has the highest gas used per swap for per token unit.