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Nov 22, 2023
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small typo #7

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2 changes: 1 addition & 1 deletion routers/routers-intro.md
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Expand Up @@ -23,6 +23,6 @@ Refer to security.md and [router community call](https://www.youtube.com/watch?v

The router’s primary business model is to earn transaction fees for providing liquidity and relaying data across chains.

Routers earn a fee of 5 basis points (0.05%) on all liquidity that is provided for a user transaction. Router liquidity is then subsequently locked up until it can be claimed against the slow path. In effect, this is asa if the router is giving a protocol-level loan to the user for a period of up to 2 hours. In this model, router ROI scales with user demand - routers earn the highest returns if a high percentage of their capital is frequently locked up.
Routers earn a fee of 5 basis points (0.05%) on all liquidity that is provided for a user transaction. Router liquidity is then subsequently locked up until it can be claimed against the slow path. In effect, this is as if the router is giving a protocol-level loan to the user for a period of up to 2 hours. In this model, router ROI scales with user demand - routers earn the highest returns if a high percentage of their capital is frequently locked up.

Routers currently do not take a fee for relaying data itself. There are future plans to implement an EIP-1559-style tip, that can supplement router income for data-only transactions.