ℹ️Formula

Dynamic Fee

Where:

The sum of 3 components has similar effect as Triple Tier Fee model.

: adjust the max. cap for each absolute fee tier

: shift the fee tier adjustment threshold - the larger beta , the greater the volatility allowed for fee tier change

: adjust the slope of fee changes when it comes across 2 absolute fee tier

Note:

• is capped by 1

• Gammas must be > 0