Fees are collected on every trade conducted on BEX. A portion of these fees goes to 1) liquidity providers (LPs), and 2) the protocol.Documentation Index
Fetch the complete documentation index at: https://berachain-422fce37-fix-pol-diagrams.mintlify.app/llms.txt
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Fee distribution
Trading fees for LPs are directly compounded inside the pool so that you don’t need to perform a separate claim transaction. For example, if token prices within your pool are unchanged between deposit and withdrawal, but there have been trades in the interim, you 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, starting from 0.01% for stable pools, and ranging up to 0.3%, 0.5%, and 1% for weighted pools. 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. Trading fees in BEX are split 50/50 between LPs and the protocol. Protocol fees are collected in theProtocolFeesCollector contract.