Fee Structure

By paying suppliers with the fees collected from other users who transact with those pools, UdonSwap encourages users to increase the liquidity of trading pools. In contrast, holding an asset carries no risk of benefiting from a significant and continuous variations in the price of the underlying asset.

Liquidity Provider Fees: There is a 0.3% fee for swapping tokens on UdonSwap. This fee is split by liquidity providers proportional to their contribution to liquidity reserves.

Swapping fees are immediately deposited into liquidity reserves. This increases the value of liquidity tokens, functioning as a payout to all liquidity providers proportional to their share of the pool. Fees are collected by burning liquidity tokens to remove a proportional share of the underlying reserves.

Protocol Fees At the moment, there are no protocol fees on UdonSwap. However, it is possible for a some fee to be turned on in the future.