Traders

Traders of assets will be ecosystem participants that are eventually end users of the MCF DEX, some of them are -

• Speculators use a variety of community built tools and products to swap tokens using liquidity pulled from the MCFinance protocol.

• Arbitrage bots seek profits by comparing prices across different platforms to find an edge. (Though it might seem extractive, these bots actually help equalize prices across broader Ethereum markets and keep things fair.

• DAPP users buy tokens on MCFinance for use in other applications on Ethereum or Polygon.

• Smart contracts that execute trades on the protocol by implementing swap functionality (from products like DEX aggregators to custom Solidity scripts).

Cost of trade

The total cost of a trade is 0.3%. 0.25% of the fee goes to the liquidity providers who have provided the pair of assets you are willing to trade in the specific liquidity pool. 0.025% of the fee goes to purchasing and burning MCF tokens and the remaining 0.025% of the fee goes to MCF token holders and stakers. Besides these, the only factor will be *slippages.

Total fees for an asset swap (Users does not pay for gas fees) :

0.3% = 0.25% (Fees for liquidity provider) + 0.025% (MCF token buyback and burn) + 0.025% (Purchase MCF tokens and forwarded to stakers and holders)

*Slippage : The disparity between a trade's anticipated price and its executed price is known as slippage.