STEX dynamic fees have received a major upgrade. Introducing the Stepwise Fee Module. The start of intelligent pricing in DeFi:

STEX now uses a high-resolution stepwise curve, built using external data to price swaps of varying sizes. - Price and volatility across exchanges - Large lending market positions at risk of liquidation - LST withdrawal queue size All affect how an LP prices swaps in STEX.

Off-chain - The health of the broader LST market is used to construct optimal pricing for different swap sizes, which is passed to the AMM periodically. On-chain swaps, deposits, and withdrawals alter the pool's reserves and the value derived from the fee curve. The goal is to maximize the pool's returns without inheriting critical dependencies from external infrastructure.

The Stepwise Fee Module is an elegant solution for more advanced pricing methods that utilize data not available onchain. Even if offchain services go down, the pool reacts very similarly to its previous fee module: - Slippage decreases as liquidity gets deeper - Prices increase as liquidity runs out But the pool now has the ability to react to events outside of its smart contracts with high resolution.

STEX AMM still holds its core invariant that an LST cannot be traded below its redeemable value. Swap Fee Modules in the Valantis Architecture serve one role: setting fees on top of the core pricing. Modularity is what allows this level of innovation in a simple upgrade.