Zero-fee trading denotes a model where participants can execute trades of digital assets on an exchange or platform without incurring direct transaction charges or commissions. This approach often relies on alternative revenue streams, such as order flow payments, premium subscription services, or the sale of data. The elimination of explicit trading fees can significantly lower the barrier to entry for new traders and encourage higher trading volumes. It represents a strategic pricing model designed to attract and retain users.
Context
The current landscape of zero-fee trading is characterized by exchanges competing intensely to attract retail investors, often through aggressive promotional offers and the absence of traditional commission structures. Debates frequently emerge regarding the underlying economics of these models and their potential impact on market quality, particularly concerning order book depth and spread efficiency. Future developments may involve a re-evaluation of these models as regulatory scrutiny increases and exchanges seek sustainable revenue generation strategies.
Avantis redefines on-chain derivatives by integrating institutional-grade real-world asset perpetuals on Base, driving significant volume and revenue within the DeFi ecosystem.
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