Swap Fees

In Dexlyn’s concentrated liquidity protocol, swap fees are distributed proportionally among all liquidity positions that are within the active price range at the time of a swap. Only positions whose ranges include the current spot price are considered active and eligible to earn fees. Once the price moves outside a position’s defined range, that position becomes inactive and no longer accrues fees.

Unlike traditional standard liquidity, where swap fees are automatically compounded into the liquidity pool, concentrated liquidity protocols accumulate fees separately. Liquidity providers can claim their earned fees at any time without the need to withdraw their liquidity.

It is important to emphasize that the Dexlyn protocol is entirely composed of autonomous smart contracts deployed on the Supra network. These contracts are operated directly by users, enabling peer-to-peer interaction and multi-party asset pooling. The entity that deployed the contracts acts solely as a technical facilitator, providing tools for users. It does not exercise control over the contracts, offer securities or regulated financial services, nor hold user assets in custody.