Fees¶

TL;DR¶

Loophole charges 4% on all LRT↔LOOP swaps and 2% on all LOOP↔ETH swaps.
Every allocation funds a specific function: NFT acquisition, staker yield, creator royalties, or protocol operations.

Trader swaps LRT↔LOOP (4% fee)
  ├── 2% → Open Bid
  ├── 1% → Stakers (credit positions)
  └── 1% → Creator Royalties

Trader swaps LOOP↔ETH (2% fee)
  ├── 1% → LOOP Stakers
  └── 1% → Team

All LRT activity cascades into LOOP↔ETH volume ──→ fees at both layers

LRT Layer¶

Every LRT↔LOOP swap incurs a 4% fee, split three ways:

• 2% → Open Bid. Funds the perpetual standing bid that acquires NFTs. This is the ongoing capital source that keeps each collection's trading cycle running after the initial presale.
• 1% → Stakers. Distributes to presalers holding credit positions.
• 1% → Creator royalties. Flows to the original NFT collection creators, tied to trading volume rather than individual NFT sales.

Each collection runs its own independent fee pool — allocations for one collection do not affect another.

$LOOP Layer¶

Every LOOP↔ETH swap incurs a 2% fee, split evenly:

• 1% → LOOP stakers. Distributes to LOOP stakers.
• 1% → Team. Funds ongoing operations including protocol development and ecosystem growth.

Fee Cascade¶

Because every LRT pairs with LOOP, all collection-level trading cascades into LOOP↔ETH volume. A trader entering or exiting any LRT position converts through two pools — LRT↔LOOP, then LOOP↔ETH — generating fees at both layers on a single transaction.

Auction proceeds amplify the cascade. When a Dutch auction completes, the Split converts LRT proceeds through LOOP and into reserves, generating swap fees at each step that flow back into the Open Bid.

The more collections the protocol supports and the more actively each trades, the greater the fee revenue at both layers.