> For the complete documentation index, see [llms.txt](https://docs.wombat.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wombat.exchange/getting-started/fee-sharing.md).

# Fee Sharing

Commencing February 28, 2023, all liquidity providers will have access to the benefits of our fee-sharing program.

## How we generate income

Our revenue generation model is based on a small fee levied on every token swap, withdrawal, or trade fee that users generate on our website, 1inch, or any other DEX aggregator.

## Sharing the Wealth

In line with our belief in sharing our income, 50% of swap fees collected will be disbursed evenly among all liquidity providers of the respective token, with the remaining 50% directed to our treasury. Fee sharing APR is displayed in the tooltip of the average APR, calculated with the below formula:

$$
\displaystyle \frac{(\sum\_{i} pool\_i.\text{dailyVolume} \* pool\_i.\text{haircut} \* pool\_i.\text{lpDividendRatio}) \* 365}{\text{Total Value Locked}}
$$

Fee-sharing rewards are reflected in the underlying asset value of your LP, and it is essential to note that the fee-sharing APR may fluctuate depending on our platform's trading volume.

All fees accrued in the past will be applied towards funding community incentives. Stay tuned for further updates!<br>
