Return on Emissions (ROE)
ROE, invented by Serious People, is Full Sail’s core metric for evaluating whether token emissions are generating productive value for the protocol. It serves as a feedback loop that guides efficient emissions. ROE compares the total economic value returned to the protocol against the value of tokens emitted.Concentrated Liquidity
Pioneered by Uniswap V3, liquidity in Full Sail is deployed within defined price ranges, rather than uniformly across the full constant product price curve. By concentrating liquidity near the active market price, the protocol increases capital efficiency and reduces slippage for traders. This structure also improves execution quality, as liquidity is deeper where trades are most likely to occur. Positions outside the selected range do not participate in swap execution and therefore do not accrue fees or trading volume.Dynamic Swap Fees
Full Sail’s fee model adjusts continuously based on real-time market conditions specific to each pool. Rather than static fee tiers, the protocol combines multiple market signals to determine the appropriate fee at the time of each swap — compensating liquidity providers more during periods of elevated risk and compressing fees during stable conditions to remain competitive for routing. For volatile pairs, fees respond to both market volatility and liquidity utilization intensity. For stable pairs, a separate fee mechanism activates only when price deviation meaningfully exceeds the peg, keeping costs minimal in normal conditions. The specific formulation and parameter calibration methodology are proprietary to Full Sail.Fee Distribution
Full Sail implements a transparent and incentivized fee distribution mechanism to reward veSAIL holders. Fees collected within the ecosystem are first allocated with 5% directed to an insurance fund. This fund is designed to enhance long-term sustainability, provide coverage for unexpected risk events, and may also be used for strategic purposes such as protocol-owned liquidity (POL) or buybacks to generate yield and reinforce value accrual. The remaining 95% of fees are then allocated as follows:- Passive Distribution (80%): 80% of the remaining fees are distributed passively to all veSAIL holders. This ensures that every holder benefits proportionally based on their veSAIL balance, without requiring active participation. Distributions occur automatically and are claimable through the platform’s interface.
- Active Participation Rewards (20%): The remaining 20% of fees are allocated to veSAIL holders who actively engage in prediction voting. Rewards in this pool are distributed based on the accuracy of participants’ predictions. Higher accuracy results in a larger share of the pool, encouraging informed and strategic involvement. To qualify, users must hold veSAIL and submit votes during eligible prediction periods.