Swap Fee Structure

Fee configuration for both v3 and v2 pools on Kriya Swap

Kriya Swap offers a flexible and efficient fee structure to cater to different types of trading pairs and liquidity pools. Given that the fee tiers and claiming processes are different for both v3 and v2 pools, let’s look at them separately.

Concentrated Liquidity Pools (v3)

When do you earn fees?

In our concentrated pools, swap fees are distributed proportionally to all ‘in-range’ liquidity at the time of the swap transaction. Only liquidity positions with price ranges that include the current spot price earn fees. If the price exits a position’s range, the position becomes inactive and no fees can be earned.

Fee Tiers

Kriya CLMM pools support multiple fee tiers to cater to different trading pair needs, allowing the market to find the most ideal liquidity distribution plan. Low-volatility assets like stablecoins tend to congregate in pools with the lowest fee tier, while high-volatility assets may gravitate towards higher fee tiers. The 4 supported fee tiers are:

0.01%, 0.05%, 0.3%, and 1%.

Note for pool creators: Multiple pools for the same token pair with different fee tiers are supported.

How do you claim fees?

Swap fees are collected separately from the pool and must be manually claimed by the investor along with any other emissions or rewards.

Constant Product Pools (v2 uncorrelated)

Currently, there is a single fee configuration for all uncorrelated v2 pairs -

0.2% charged in deposit token

Stableswap Pools (v2 correlated)

Currently, there is a single fee configurations for all correlated v2 pairs -

0.01% charged in deposit token

How is fee claimed? (for all v2 pools)

For both constant product and stableswap pools, the fee charged is put back into the LP pool where it accrues. LPs realize yield when they redeem their LP tokens. Their share of the fee is calculated based on the number of LP tokens they hold versus the total supply. LP tokens are then burned, and the initial capital plus accumulated fees are sent in the form of the pool’s individual asset tokens.

Protocol Fees

The Fee Switch: By default, 2/3rd of the charged fee goes to LPs, and 1/3rd goes to the protocol treasury. This applies to both v2 and v3 pools.

Order Routing Fee: The order routing fee is currently zero.

Others: Pro Trading Fee (Configured by Deepbook) https://docs.sui-deepbook.com/deepbook-fee-structure