# Protocol Owned Liduidity

When you transact a swap (trade) on the exchange, you will pay a **0.17% trading fee (The lowest trading fee on Astar Network)**, and a portion of the fee is used to buy back $PANDORA and configure POL.

**0.10%** - Returned to liquidity pools in the form of a fee reward for liquidity providers.

**0.05% -** Forming of PANDORA/ASTR LP and sending it to Treasury wallet as backing for $PANDORA

**0.02%** - Pandora Swap Treasury

Pandora Swap is the Third-Gen AMM/DEX on ASTAR Network that will be introducing POL to the system. By allocating a big portion of our fees to buying back $PANDORA and forming LPs, we will be able to ensure that as the platform scales in trading volume, it will help create deflationary pressure on $PANDORA, resulting in a price increase over time. On top of that, by forming LPs, we are ensuring that there will always be liquidity for $PANDORA tokens. Even during worst scenarios there will be enough liquidity to support any sell offs.
