# RocketSwap Guides — Staking RSWP & Fee Discounts (rocketswap.exchange)

In this guide we are going to look at the governance token of the RocketSwap exchange, $RSWP, and get to the bottom of the benefits of staking with it and also work through how the RocketSwap contract calculates those sweet fee discounts.

OK, lets jump into it! First let’s have a look at what we are talking about, the $RSWP Staking and Trade Fee Discount view below:

Let’s work though some of the details in the picture:

- The ‘
*Instant 25% discount on fees when paying in RSWP’*is correct — verified by RocketSwap developers. However, it is not shown in this section on**Trade Fee Discount**and is applied later. *‘Additional discount on fees depending on how much RSWP is in your fuel tank’*(staking). This is the bit that does show as**Trade Fee Discount**, and probably leads to the key question — how does it work and how much RSWP is enough?

The staking formula is as follows — *ln({RSWP})*0.07-0.505*. If we plot that it looks like the line in blue below:

So how much is enough? This really is a personal choice, however as you can see, the benefits start to diminish as you get into the higher regions. For me, I penned in the tangent line, in red above. Somewhere in the region of 34,500 to 50,000 RSWP would be a good range if you intend of doing a decent amount of transactions on the exchange. Which would equate to a 22.641% or 25.238% discount respectively. Pushing to 30%, would require close to 100k RSWP. However, this really is personal preference and depends entirely on what you are using RocketSwap for and what you are trying to achieve.

For smaller investors that intend to trade a reasonable amount of the time, a target of 3694 RSWP yields an excellent ‘cost/benefit’, netting you a 7.0013% discount.

**Why, oh why, is the minimum stake 1361? Glad you asked!**

Zooming right in on the graph we can see it crosses the x axis not at 0, but pretty damn close to 1361 — at 1358.703 to be precise. At which point, based on the formula, if you put in less than 1358.703 you would actually be paying extra (not that this happens, as you can see in the contract below, the ‘discount’ can’t go negative).

Final piece of the puzzle! how does it all add up? Looking at the Rocketswap contract, con_rocketswap_official_v1_1, we can see the following:

`__state['FEE_PERCENTAGE'] = decimal('0.5') / 100`

This is the original fee percentage being 0.5%, the ‘__discount’ is defined below:

`__discount = Hash(default_value=1, contract='con_rocketswap_official_v1_1', name='discount')`

‘__discount’ defaults to 1 (no staking) however is calculated when you stake RSWP, therefore found under ‘staking’ in the contract:

__state['MULTIPLIER'] = decimal('0.07')

__state['DISCOUNT_FLOOR'] = decimal('0.505')discount_amount = __state['LOG_ACCURACY'] * (__staked_amount[ctx.

caller, __state['TOKEN_CONTRACT']] ** (1 / __state[

'LOG_ACCURACY']) - 1) * __state['MULTIPLIER'] - __state[

'DISCOUNT_FLOOR']

if discount_amount > decimal('0.99'):

discount_amount = decimal('0.99')

if discount_amount < 0:

discount_amount = 0

__discount[ctx.caller] = 1 - discount_amount

You can see the formula mentioned earlier here. Also note.. technically 99% is the maximum discount however good luck getting that much RSWP. Lets go with the previous example of 34500 RSWP staked and a 22.641% discount for staking. In this case:

`__discount[ctx.caller] = 1 - 0.22641`

Looking at the ‘buy’ to put this into use:

`fee_percent = __state['FEE_PERCENTAGE'] * __discount[ctx.caller]`

which is:

`fee_percent = 0.005 * 0.77359`

fee_percent = 0.00386795

then we add in our 25% discount for paying in RSWP:

__state['TOKEN_DISCOUNT'] = decimal('0.75')fee = tokens_purchased * fee_percent

if token_fees is True:

fee = fee * __state['TOKEN_DISCOUNT']

The above converts the fee into a token amount however we can still calculate the end result as a total discount.

`end result = 0.00386795 * 0.75`

= 0.0029009625

Or 0.29% in fees instead of our original 0.5%.

Let’s also not forget the 20% burn on Fees in RSWP putting positive pressure on RSWP price providing further indirect benefits for hodlers of RSWP.

I hope you enjoyed the deeper look behind the scenes at what makes RocketSwap great! You can head back to the RocketSwap Guidebook here for more helpful tips.

If you found this guide useful, throw me a bone or even some TAU at:

0f7b1957e6b00e46896e6eac041439a24ecb1b038c76a2b4f61f3b82a9d9a231

Thanks!

**For more information:**

Check out RocketSwap and the good folks at Lamden.