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# Fee AMM Overview

The Fee AMM (Automated Market Maker) is a dedicated system for converting transaction fees between different stablecoins. It enables users to pay fees in any supported stablecoin while allowing validators to receive fees in their preferred token.

## How It Works

When a user pays fees in a stablecoin that differs from the validator's preference, the Fee AMM automatically converts the payment:

* **User pays**: 1.0 of their chosen stablecoin
* **Validator receives**: 0.9970 of their preferred stablecoin
* **Liquidity providers earn**: 0.003 (0.3%) as fees

This conversion happens automatically at the end of each block through batched swaps, preventing MEV attacks like sandwiching.

## Learn More

<Cards>
  <Card description="Enable users to pay fees using your stablecoin" to="/docs/guide/issuance/use-for-fees" icon="lucide:circle-dollar-sign" title="Use Your Stablecoin for Fees" />

  <Card description="Complete Fee AMM protocol specification" to="/docs/protocol/fees/spec-fee-amm" icon="lucide:file-text" title="Fee AMM Specification" />

  <Card description="Provide liquidity to enable fee token conversions" to="/docs/guide/stablecoin-dex/managing-fee-liquidity" icon="lucide:droplet" title="Managing Fee Liquidity" />
</Cards>