Fees & Rewards

Fees and rewards are interwoven throughout most aspects of the protocol to encourage continued growth and development as well as attract liquidity to the platform. Fees and rewards are closely related, as they both contribute to attracting and keeping users and liquidity on the protocol, but in slightly different ways.

Fees

Fees are charged on every swap conducted that utilizes a PopSwap smart contract. These fees are then broken down into two parts, with one portion going to liquidity providers (LPs) and the other portion going to the PopSwap treasury to fund continued growth and further initiatives. The fee breakdown is as follows:

• 0.3% is taken on every swap made on PopSwap - 0.25% of this fee is immediately redistributed to users in the form of LP rewards (more on these below) - 0.05% of this fee is sent to the PopSwap treasury

Rewards

Rewards are given out to LPs as an incentive for them to provide their liquidity on PopSwap. Total reward amounts are pre-determined and are awarded in equal amounts daily. The amount of rewards an LP stands to receive is entirely based upon how many POP-LP tokens they have, and their specific percentage of the pool.

For example, if an LP had POP-LP tokens amounting to 3% of the POPCAT/BROCK pool, they would be entitled to claim 3% of the daily POPCAT/BROCK rewards in the pool. Though just an example, one can see how these rewards could add up very quickly if they were to stay vigilant. It’s important to note that one’s percentage of a pool is not fixed by any means; if another user came by and deposited more liquidity into the POPCAT/BROCK pool, the first user’s percentage share of the pool would be diluted to a lower percentage, as there’s now more money in the pool.