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I get that it's CoinBase's fee (vig). I'm having a hard time understanding where the fixed 0.25% fee comes from other than:

fee = desired_profit / (expected_transaction_volume * expected_average_transaction_value)



So you think the fee to remove liquidity should "float" in what way exactly? With per-customer tiered volume discounts like many exchanges offer to customers who trade enough in a given month? Or when you said "float" did you mean it should be variable across the entire exchange over time, but the same for all customers at any given time?


Like any well functioning market, it should track the actual cost of goods, in this case, the actual cost of facilitating the transaction.

I have a hard time believing that a fixed 0.25% has anything to do with the real costs. It doesn't appear that CoinBase is even making that argument.




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