LP Rewards

Swap fees

Every trade pays the configured fee. Trading fees are at launch 2.5% and decrease over time.

Your fee share is proportional to the fraction of active liquidity your position supplies over the lifetime of those swaps. The percentage share is defined by the custodian, and it defaults to 40% of each trade.

Fees are claimable and not auto-compounded.

Other incentives

From time to time, custodians or partners may add external incentives. These are disclosed on the vault page and do not change the pool math.

Fee accounting internals

For concentrated-liquidity pools, fees accrue per unit of active liquidity and are tracked on chain. At a high level:

• The pool keeps cumulative fee growth per liquidity for each token, feeGrowthGlobal0X128 and feeGrowthGlobal1X128.

• Each initialized tick tracks fees accumulated outside it. From these, you derive feeGrowthInside for any position’s [lower, upper] range at the current tick.

• Each position stores the last feeGrowthInside it observed at mint or at the last collection.

• Uncollected fees for a position are computed as:

  • fees0 = liquidity · (feeGrowthInside0_now − feeGrowthInside0_last) / 2^128

  • fees1 = liquidity · (feeGrowthInside1_now − feeGrowthInside1_last) / 2^128

• Collecting fees updates the stored “last” values so future accruals start from zero again.

Why this matters for LPs

• Narrow ranges earn higher fees per capital while in range, but require more rebalancing and face higher inventory drift.

• Full-range positions earn continuously, but at lower fee density per unit of capital.