KLEX Liquidity Provision

Overview

There are a few different types of fees on Klex, each collected to support a healthy ecosystem. For example, Liquidity Providers collect swap fees as users trade with pools; this acts as an incentive for them to continue providing liquidity, which is useful to facilitate trades.

Swap Fees

Example

Let's say Alice, Bob, Chuck, and Diana all provide liquidity in the same pool starting out with a total value of $100. After some time, the pool has collected many trade fees and is now worth $200. The pool itself grows while the Liquidity Providers' proportional shares stay the same.

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