THORChain employs a distinct fee structure aimed at ensuring network security and providing economic incentives for its participants. The platform charges several types of fees: a fixed outbound fee, a dynamic liquidity fee, and a slip-based fee. Outbound Fee: This is a fixed fee applied to transactions leaving the THORChain network. It covers the cost of sending assets from the network to an external blockchain, ensuring the network remains sustainable. Liquidity Fee: This dynamic fee varies based on the liquidity of the pool involved in the transaction. It serves to reward liquidity providers, who are essential for the functioning of the protocol. This fee is crucial in maintaining the balance and availability of assets across the network. Slip-Based Fee: Designed to mitigate the risk of market manipulation by large traders (whales), this fee is calculated based on the impact of the trade on the pool’s price. Larger trades that significantly alter the pool’s balance incur higher fees. These fees are distributed to liquidity providers as compensation for the potential price impact of large trades . This multi-faceted fee structure not only ensures the economic viability of the THORChain network but also promotes fair trading practices and rewards participants who contribute to the ecosystem’s liquidity.