Liquidity Provider's Fee Rewards

Each time a transaction is made in a liquidity pool, a trader is charged a fee of 0.2% on the swap volume (token sold). Since either token of the pool can be sold, the fee can also be charged in either token. This 0.2-percent fee goes straight into the pool, making it bigger and richer.

That way, the fee earned by the pool is distributed among all liquidity providers. To collect rewards from fees, the liquidity provider has to remove liquidity from the pool.

You may use explorer services to view APY (yearly returns) by the pool:

To view given provider's returns within a specific pool, visit that pool's page on Chainik. Example:

LP fees

This material serves educational purposes only. The information contained herewithin does not constitute an investment, financial, legal, or tax advice, and it is not an offer or solicitation to purchase or sell any financial instrument.