There is a 0.30% fee for swapping tokens. Break it down into:

  • 0.25% fee is split by liquidity providers proportional to their contribution to liquidity reserves.

Swapping fees are instantly added to liquidity reserves, effectively raising the value of liquidity tokens. This acts as a payout to all liquidity providers in proportion to their pool share. To collect fees, liquidity tokens are burned to remove a proportional share of the underlying reserves.

Since fees are added to liquidity pools, the invariant increases at the end of every trade. Within a single transaction, the invariant represents token0_pool / token1_pool at the end of the previous transaction.

  • 0.05% for the protocol fee.

A protocol-wide charge of 0.05% per trade will take effect. This represents β…™th (16.6Μ…%) of the 0.30% fee

This amount would not affect the fee paid by traders, but would affect the amount received by liquidity providers.

Protocol fee will be received at this wallet address: ....

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