Fee distribution
Haircut (swap fee) collected is automatically distributed when its value exceeds
Pool.mintFeeThreshold
during deposit and withdrawal transactions. This value is usually set at a value of about $10 USD. Alternatively, users can call Pool.mintFee(address token)
, which is supported from V3 pool contracts, to instantly distribute fees.Haircut is distributed in 3 portions:
- LP dividend: A certain amount of haircut is distributed to LPs, which is determined by
Pool.lpDividendRatio
. The underlying token amount for LPs increases accordingly. The ratio can be checked usingPool.exchangeRate(address token)
. - Retention: Some haircut is retained in the tip bucket of the pool. The ratio could be checked by
Pool.retentionRatio
. It can be used to fill the pool if the retention factor drops below 1, or retrieved by the pool owner for other uses. - Remaining haircut are transferred to
feeTo
address
The value shown in the above table might be outdated. Please refer to the smart contract for the latest value.
Currently, 50% of haircuts are allocated to "LP dividend" and the remaining 50% are allocated to "Retention". For USD+ family of assets, haircuts allocated to "Retention" are transferred to
feeTo
to ensure proper skimming.Last modified 1mo ago