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?