Uniswap has liquidity provider fees ranging from 0.01% to 1% on cryptocurrency swaps. It distributes the fees from each swap among the liquidity providers for that pair of cryptocurrencies.
What does Uniswap do with fees?
Uniswap currently imposes a 0.3% fee for trading tokens on the platform. Revenue generated by the fee is immediately placed into liquidity reserves, and liquidity providers (LPs) receive a payout dependent on their contribution to the liquidity pool.
How do liquidity providers make money Uniswap?
Liquidity providers earn fees from transactions on the DeFi platform they provide liquidity on. The transaction fees are distributed proportionally to all the liquidity providers in the pool, so the more crypto assets you stake the more fees you’ll earn.
How does SushiSwap make money?
The SushiSwap app is making high revenue
The protocols in place at the liquidity pools take a 0.3% cut from transactions, but its maintenance incentivizes users. This system makes the platform circulate more money than usual by buying and selling DeFi or centralized cryptocurrency exchanges.