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For Liquidity Providers

Return on Investent (ROI)

There is a 0.30% fee for swapping tokens. This fee is split in two ways:
  • LEVIN stakers - 0.05%
  • Liquidity Provider fee - 0.25%
Liquidity providers receive fees proportional to their contribution to liquidity reserves.
Swapping fees are immediately deposited into liquidity reserves. This increases the value of liquidity tokens, functioning as a payout to all liquidity providers proportional to their share of the pool. Fees are collected by burning liquidity tokens to remove a proportional share of the underlying reserves.

Impermanent Loss (IL)

Liquidity providers are subjected to impermanent loss when providing liquidity. Any temporary loss becomes permanent when liquidity is removed from the pool.
  • a 1.25x price change results in a 0.6% loss relative to HODL
  • a 1.50x price change results in a 2.0% loss relative to HODL
  • a 1.75x price change results in a 3.8% loss relative to HODL
  • a 2x price change results in a 5.7% loss relative to HODL
  • a 3x price change results in a 13.4% loss relative to HODL
  • a 4x price change results in a 20.0% loss relative to HODL
  • a 5x price change results in a 25.5% loss relative to HODL
Liquidity providers are proftable when collected fees > impermanent loss.

Liquidity Farming

Liquidity providers of Levinswap are able to stake their LP tokens and farm LEVIN tokens.
Read more here.
Initial farming amount and the deadline - when it starts and when it ends - will be determined by the team. By the time the farm ends, we'll have set up the necessary governance infrastructure for creating and maintaining new farms.