Arbitrage Benefits

The arbitrage profits generated for the protocol allow Zero DEX to provide zero fee swaps on all token pairs. The profits take the place of the fees normally found on DEXs.

Arbitrage profits are generated as WETH and then swapped for ZERO tokens and used as follows:

• 77% of the ZERO is rewarded to liquidity providers and ZERO stakers to increase their yield.

• 10% of the ZERO is sent to the DAO's reserve.

• 10% of the ZERO is burned.

• 3% the ZERO is used for decentralized upkeep.

The above percentages can be adjusted as needed by the DAO itself.

Additionally, the automatic arbitrage provides significant protection against both Sandwich Attacks and Price Manipulation. For details check out the Substack article from our sister protocol: Making Sandwich Attacks Inedible with Salty.IO.