Fees

Swap Fees in the AtmosSwap Ecosystem

In the AtmosSwap ecosystem, similar to traditional capital markets, liquidity providers earn fees whenever users trade against the assets they have supplied to the Automated Market Maker (AMM).

How Swap Fees Work

Fees are collected in the token being swapped. For instance, if a pool contains AtmosSwap’s governance token (for ex. ATS) and Ethereum (zWETH), and a user swaps zWETH for ATS, liquidity providers receive a portion of the incomingzW ETH. Liquidity provider (LP) tokens represent partial ownership of the pool, and swap fees automatically accumulate within these LP tokens.

Different Fees for Different Pools

The swap fee is not fixed and varies based on the asset pool and its type. These fee parameters can be adjusted by the liquidity pool creator

• Weighted Pools (volatile assets): we allow users to set the pool fees in a range of 0.2 % and 1% (by default we charge 0.3% for weighted pools)

• Stable Pools (more stable assets): we allow users to set the pool fees in a range of 0.1% and 0.5% (by default we charge 0.15% for stable pools)

Fee Distribution: Protocol and Liquidity Providers

For all pool types, the protocol retains 50% of the trading fees, while the remaining 50% is distributed directly to liquidity providers. For example, if a pool charges a 1.00% fee, 0.50% goes to the liquidity providers, and the other 0.50% is allocated to the AtmosSwap protocol treasury.

---