Slippage & Fees
Slippage
As with any AMM that relies on liquidity pools, trades across Polymer incur slippage (discrepancy between the pool exchange rate and the market rate). Slippage is reduced by swapping through pools with higher liquidity and, in the case of 1:1 trades, swapping through stable pools. When executing a swap, forced slippage can be mitigated by specifying a min_amount_out, which will cause the swap to fail if slippage is too high.
Fees
Swaps across each pool on Polymer incur a small fee of about 0.35 percent. Polymer's fee breakdown is as follows:
| Amount | Allocation |
|---|---|
| 0.125% | PLMR Holders (sent to PLMR bonding contract) |
| 0.225% | Liquidity Providers (left behind in liquidity pool) |