Fees

How fees are collected and put to use

Fees

Fees are the fuel that ultimately fund the protocol and incentivize actors in the Symmetric economy. They are made predominantly from swap fees (fees charged for trading on the platform), but also through flash loans and yield made on wrapped tokens. Fees are distributed directly to liquidity providers (50%) and also collected by the protocol to be distributed to the Symmetric treasury (50%).

Fees Distributed to Liquidity Providers

1/2 of swap fees are paid directly to liquidity providers by traders in recognition of making the swap possible. These tokens are sent directly to the pool in the denomination of the input token involved in the trade, and effectively make the pool larger and thus each share of the pool larger as well.

Protocol Fees

Protocol Fees are fees collected by Symmetric. These fees are collected through the protocol fee collector and distributed to both to the Symmetric treasury, to be managed by Symmetric governance. Protocol Fees will eventually be distributed monthly to both veSYMM holders and the treasury.