# Utility | Fees

Current bridges primarily focus on stablecoins, often neglecting the need for transferring high-value blue-chip digital assets across different blockchains. Delta Bridge aims to address this gap by enabling seamless transfers of these assets. Liquidity providers (LPs) can participate in single-sided pools, earning fees from inbound transfers without facing the risk of impermanent loss.

To sustain the protocol’s functionality, Delta Bridge utilizes two distinct methods for calculating transaction fees:

#### a) Protocol Fee:

When users withdraw liquidity across chains, a 0.025% fee (2.5 basis points) is applied. This fee is charged on every transfer that removes liquidity from a pool. The entire amount goes to the treasury, where it is reinvested to repurchase and distribute Delta tokens, governed by Delta token holders.\
**Example**: If John transfers 10 ETH from Polygon to Ethereum, he deposits 10 ETH into the Polygon ETH pool and receives 10 ETH on Ethereum, minus a 0.0025 ETH fee.\
\&#xNAN;*Note*: LP token staking rewards help maintain initial liquidity on both sides. Over time, liquidity may become imbalanced, but this does not directly impact LP tokens or staking rewards.

#### b) Rebalancing Fee:

A rebalancing fee is triggered when there’s an imbalance between liquidity pools—specifically when transferring assets from a pool with higher liquidity to one with lower liquidity. This fee is collected in a reward pool on the low liquidity side and distributed when transfers are made in the opposite direction, thereby boosting liquidity on the low side. The fee amount depends on the severity of the imbalance.\
Delta follows a rebalancing framework similar to the Stargate Protocol, with a slightly higher λ2 hyperparameter set at 99.6%, since the protocol fee is deducted before the rebalancing fee is applied. Both fees are based on the full swap amount.

Delta’s approach ensures smooth, secure, and cost-effective asset transfers while maintaining liquidity balance across chains.

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