# Fees & Distribution Mechanism

`SLIZ` utilizes two different price curves, the Uniswap v2 and the Curve Stable Swap, with the latter being more suitable for trading correlated assets such as USDC-USDT allowing a higher trading volume and lower slippage.&#x20;

The fees for trading volatile assets on SolidLizard are \[0.4%], while stable assets have a fee of \[0.02%].&#x20;

The fees generated from trading on SolidLizard are distributed to voters over a period of 7 days at the beginning of the next epoch. These fees are distributed proportionally to `veSLIZ` users who voted for their chosen gauge.  If any protocol chooses to bribe a pool, the `veSLIZ` holders that voted for that pool will share the whole bribe proportionally too.

### Stable Pools

Stable pools are intended for assets that do not fluctuate in price very much. They are perfect for stable pairs, allowing traders to trade with low slippage and at the best rates even with large traded volumes.&#x20;

{% hint style="info" %}
x³y + y³x ≥ k
{% endhint %}

### Variable pools

Variable pools are designed for assets with high price volatility. These pools use a generic AMM formula that we generally find in DEXs like Uniswap or Pancakeswap.&#x20;

{% hint style="info" %}
x × y ≥ k
{% endhint %}

### Visual representation of the formulas

The mathematical formulas are used to keep the total pool liquidity balanced at all times.

Below, you can find a visual comparison between the stable (red) and volatile (green) AMM pricing equations, where:

* x is the amount of first asset in the pool&#x20;
* y is the amount of second asset in the same pool&#x20;
* k is a fixed constant

{% embed url="https://www.desmos.com/calculator/mkq8a5ysej" %}



