Indicative Pod Settings

Configuration can vary depending on asset characteristics and typical price action. Below are some indicative settings based on the daily volatility of the underlying asset of a Pod.

Volatility Category

Wrap/Unwrap Fee

Buy/Sell Fee

Low Volatility (<5%)

0.2% / 0.3%

<1% each

Mid Volatility (5–10%)

0.5% / 1%

1–2% each

High Volatility (10%+)

1% / 1.5%

2.5% each

The recommendation for pTKN Burn varies depending on the intention of the Pod. A lower pTKN burn will see a greater portion of Pod revenue being supplied solely to liquidity providers, whilst a higher burn ensures a larger portion of yield for passive pTKN holders. If the goal is to incentivize a “staking” style model then a higher pTKN burn is the favorable option, or if the aim is to encourage liquidity depth then a lower pTKN burn should be applied. Note: The greater the volume and liquidity depth of both the TKN and pTKN pools, the greater the potential performance of the Pod.

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