💰 Implement Dynamic Fee Estimation Engine #62
Description
🧭 Overview
BridgeWise provides cross-chain quotes, but fees can vary based on:
- Network congestion
- Liquidity pool depth
- Gas price fluctuations (EVM)
- Bridge-specific transaction costs
This issue introduces a Dynamic Fee Estimation Engine to provide accurate, real-time fee predictions per route.
Accurate fee estimates are critical for:
- Smart ranking (Issue [DevOps] Setup Monorepo Documentation via Storybook #5)
- Slippage calculations (Issue Configuration & Secrets Management Module #7)
- Transparency for users
- Reducing failed transactions due to insufficient funds
🎯 Problem
- Static fee estimates are inaccurate during network congestion.
- Users may be charged more than expected.
- Ranking based purely on outdated fees can select suboptimal routes.
- Lack of dynamic fees reduces trust in the SDK.
Without dynamic fee estimation, BridgeWise risks misleading quotes and poor UX.
💡 Proposed Solution
Build a Dynamic Fee Estimation Engine that:
- Fetches real-time network fees for EVM chains
- Estimates liquidity-based fees for AMM/bridge pools
- Calculates total route cost including gas + bridge fees
- Integrates with ranking, slippage, and status components
- Exposes API and hooks for developers
🛠 Scope of Work
1️⃣ Define Fee Data Model
interface FeeEstimate {
bridgeName: string;
sourceChain: string;
destinationChain: string;
totalFee: number; // in native token
gasFee: number; // network-specific
bridgeFee: number; // provider-specific
lastUpdated: Date;
}- Include all components contributing to total cost
- Normalized across chains for ranking
2️⃣ Implement Fee Fetching Logic
- Fetch gas prices for EVM chains
- Fetch bridge-specific fees
- Estimate liquidity impact for AMM-based bridges
- Update dynamically on quote requests
3️⃣ Integrate With Ranking Engine
- Feed dynamic fees into Smart Bridge Ranking (Issue [DevOps] Setup Monorepo Documentation via Storybook #5)
- Ensure real-time adjustments influence route selection
- Provide transparency in fee breakdown to UI components
4️⃣ Hooks and API Exposure
useFeeEstimate()hook for React developers- Optional REST endpoint for SDK integrators
- Return normalized fee breakdown
- SSR-compatible for Next.js
5️⃣ Error Handling & Fallbacks
- Provide fallback static fee if dynamic fetch fails
- Show warning for high network congestion
- Ensure calculations never block UI rendering
📊 Expected Outcome
- Accurate, real-time fee estimates for all routes
- Improved route selection and ranking
- Transparent cost breakdown for users
- Reduced failed or underfunded transactions
✅ Acceptance Criteria
- Fee data model implemented
- Real-time EVM gas price fetching
- Bridge-specific fee estimation implemented
- Liquidity-based fee calculation included
- Integrated with ranking engine
-
useFeeEstimate()hook available - SSR-safe implementation
- Fallback fees provided if dynamic fetch fails
- Unit tests for dynamic fee logic
- Documentation updated with usage examples
📈 Measurable Impact
- Reduced unexpected fees during cross-chain transfers
- Increased user trust in BridgeWise quotes
- Improved accuracy in Smart Bridge Ranking
- Fewer failed or aborted transactions
🧪 Testing Requirements
- Simulate varying network congestion
- Validate fee breakdown for multiple bridges
- Confirm fallback fees are correctly applied
- Test hook and REST API outputs
- Verify integration with ranking engine
- Ensure SSR-safe behavior in Next.js
📚 Documentation Requirements
- Add “Dynamic Fee Estimation” section to README
- Provide usage examples with hook
- Include breakdown explanation in UI
- Document fallback behavior and error handling