Why Is the PPS Fee Generally Higher than the PPLNS Fee?
The PPS fee is higher because the pool operator takes on the financial risk of block discovery variance. They guarantee a fixed payout to miners regardless of whether a block is found.
This risk absorption requires a higher premium (the fee) to compensate the operator for the capital required to maintain reserve funds and cover potential losses during unlucky periods.
Glossar
Pool Fee
Cost ⎊ The pool fee represents the transaction cost incurred by a trader when swapping assets through an automated market maker (AMM) liquidity pool.
PPS
Protocol ⎊ The term PPS, within cryptocurrency and derivatives contexts, frequently denotes a Payment Protocol Standard, a framework designed to facilitate atomic swaps between distinct blockchain networks.
Fee
Charge ⎊ A fee within cryptocurrency, options, and derivatives represents a cost associated with executing a trade, accessing a platform, or maintaining a position, directly impacting net profitability and requiring precise quantification for strategy backtesting.