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15 Nov 2022
For Beginners

How Are Swap Fees Distributed?

Learn how swap fees on generated and distributed on Sushi

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For every swap made, there is a 0.3% fee taken in proportion to the size of the swap made. That fee is split between xSushi holders (0.05%) and liquidity pool providers (0.25%). For liquidity providers, the assets paid out are in the pair of the tokens they provided into the liquidity pool. For example, if you deposited USDC & wETH into a liquidity pool, you would receive swap fees back in USDC & wETH as well.

Fees are distributed among all the providers of a liquidity pool by the percentage of the pool they own. For example, if the amount of liquidity you provide adds up to 2% of the pool, you will receive 2% of all fees from that pool. To calculate the fees earned, you will need to use an external dApp or tool.

Important: The fees cannot be harvested; they can only be withdrawn entirely with the added liquidity from the pool!


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