What are fee tiers?#
A fee tier is the percentage of the liquidity provider fee applied to swaps in a liquidity pool.
Every provider who adds liquidity to a pool receives a share of the fees the pool earns. Fees are distributed proportionally among all active liquidity providers.
Fee tiers on CenturionDEX v3#
- CenturionDEX v3 offers 0.01%, 0.05%, 0.30%, and 1.00% fee tiers.
- Earned fees are collected and stored separately, and are not automatically added back into the pool.
- Providers can collect earned fees without removing the liquidity from the position. See How to collect fees from a liquidity pool on CenturionDEX v3.
- Once collected, providers can keep the earned fees in their wallet or add them back to the position.
- Removing liquidity withdraws the chosen amount plus any earned fees.
Fee tiers on CenturionDEX v2#
- CenturionDEX v2 only offers a 0.30% fee tier.
- LP fees are automatically added back into the pool, increasing the value of the position.
- Removing liquidity withdraws all tokens in the pool plus any earned fees.
A portion of fees may also be allocated to the Centurion Protocol fee, as described in What is a liquidity provider (LP) fee?
Related#
- What is a liquidity provider (LP) fee?
- What is a tick when providing liquidity?
- How to collect fees from a liquidity pool on CenturionDEX v3
- Why is my liquidity position not evenly split between the two tokens?
- Collecting fees (v3 SDK) — fee tiers and fee collection at the SDK level (CenturionDEX developer docs).