A zero-fee trading model is a business strategy where a trading platform charges no direct commission for executing trades. Instead of charging explicit fees per transaction, these platforms often generate revenue through other means, such as payment for order flow, premium subscription services, or interest on customer funds. This model aims to attract a large user base by removing a common barrier to entry for retail traders. It significantly alters the economics of brokerage services.
Context
Crypto news frequently reports on exchanges adopting a zero-fee trading model to gain market share, particularly in competitive spot trading markets. Discussions often address the alternative revenue streams these platforms employ and the potential implications for market transparency and user experience. The viability and long-term sustainability of zero-fee trading remain a topic of ongoing analysis in the digital asset industry.
The Zero-Fee Perpetual primitive fundamentally re-architects the DEX fee model, creating a capital-efficient environment that aligns protocol revenue with trader profitability, driving massive volume on Base.
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