LP Rewards

Liquidity providers earn rewards in the form of the 0.25% taken from swaps into a pool.

LP Rewards - What Are They?

Rewards are provided to incentivize liquidity addition into Swift AI's liquidity pools. Each swap that is facilitated through a liquidity pool must pay 0.3% of the swapped-in token amount to the pool. These tokens that go into the pool are split up between all of the liquidity providers (0.25%) and platform fee (0.05%) as rewards.

LP Reward APR

Swift AI Analytics provides a LP Rewards percentage that indicates the estimated rate of return that a specific liquidity pool based on the fees earned from swaps alone.

The APR calculation is (Fees Collected Last 7 days * 52) / Liquidity and does not include potential for impermanent loss.

Claiming Your LP Rewards

While you are providing liquidity to a Swift AI pool, you earn your share of the 0.25% that users pay for each swap that they make.

These swap fees are paid directly into the balance of the pool. Your percentage of the pool is now more valuable because the total value of the pool has increased from the fee deposit.

There are no extra steps that you need to take to claim your rewards. When you remove your liquidity from the pool, the fees that you have accrued automatically come with you.