Pool fee distribution

Every swap through the AMM charges a trading fee. The rate is not yet set. See Fees. The whole fee goes to the pool's liquidity providers; the protocol takes no cut of it.

How the fee accrues

Fees are deposited straight back into the pool's reserves, split in proportion to each provider's share. That produces an auto-compounding effect: there is no separate "claim" transaction, and your LP tokens simply redeem for more of the underlying pair as fees build up.

Realising your fees

Because fees live inside the reserves, they cannot be harvested on their own. You collect them when you withdraw liquidity: burning your LP tokens returns your share of the reserves, paid out in both tokens of the pair, fees included.

What drives your return

• the pool's fee rate,
• its trading volume, more swaps, more fees,
• its total value locked, your share of a bigger pool is smaller,
• and the impermanent loss the pair produces, which can eat into the fee income.