PreBond Tax

Flap supports Tax tokens. Since V5.4.0 (on BNB Chain & XLayer) , tax is not only applied to migrated tax tokens but also the ones that are still on the bonding curve.

When a tax token has already migrated DEX, it will charges a tax on every trade through the main pool and accumulate the tax in the token first. Once the accumulated token amount reaches a specific liquidation threshold, an automatic liquidation happens to sell the token for quote and sent the the beneficiary through the Tax Splitter. (See Bonding Curve Tax Token V3 to learn more details)

When a tax token is still on the bonding curve, we don’t implement it as a “real tax” like a migrated one. To make it simple and easy to do an off-chain quote, we implement it as an extra fee added upon the current bonding curve fee.

For example:

• For a non-tax token, the current bonding curve fee on BNB chain is 1%.
• For a token with a tax of 3%, the effective trading fee becomes: 1% + 3% = 4%
• For a token with a tax of 1%, the effective trading fee is 2%