How It Works
The Two-Part Dynamic Fee Engine
Aegis dynamically adjusts swap fees for every trade using a two-part model:
effectiveFee = baseFee(volatility) + surgeFee(capEvents)Fee Component
Trigger
Function
baseFee
Updated daily based on oracle data
Reflects long-term market volatility
surgeFee
Triggered by a "cap event" — a sudden price spike
Applies a temporary surcharge that decays over time
Why This Matters
Normal Markets → Lower fees → Tighter spreads
Volatile Markets → Higher fees → Better LP yield
Flash Events → Temporary surge fees → Mitigates toxic flow, then self-reverts
As a result:
LPs earn more when markets are volatile
MEV extraction becomes less profitable
The pool adapts automatically without manual input
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