For Liquidity Providers
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.
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 providers of Levinswap are able to stake their LP tokens and farm LEVIN tokens.
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.
Last modified 1yr ago