Fees

Fees are collected on every trade conducted on BEX. A portion of these fees will go to 1) liquidity providers (LPs), and 2) BGT stakers.

LP Fee

Trading fees for LPs are directly compounded inside the pool such that LPs don't need to perform a separate claim transaction. For example, if token prices within an LP's pool are unchanged between deposit and withdrawal, but there have been trades in the interim, the LP will see a higher balance upon withdrawal due to the accumulation of fees.

The portion of fees going to LPs is set at the time of pool creation, the available options being 0.05%, 0.30%, and 1%. The lower fee tiers are generally more appropriate for stable pairings (e.g. stablecoins and blue-chip assets), while the higher fee tiers may be more appropriate for exotic assets, offsetting the risk of LPs holding volatile assets for the duration fo their position.

BGT Fee

An additional 0.1% is levied against traders, which is redirected to BGT stakers as reward for securing the Berachain network.