Fee Distribution

Liquidity providers on Vela Trade earn a share of trading fees generated by the protocol’s liquidity pool. These fees are distributed every 30 minutes based on each provider’s contribution to the pool.

Fee Sharing Model

Currently, 70% of all trading fees are allocated to liquidity providers, ensuring fair compensation for supplying liquidity. Since Vela Trade operates with a single liquidity pool, all trading activity contributes to this unified fee structure.

Future Enhancements

While the base fee share is 70%, Vela Trade is exploring additional mechanisms to reward liquidity providers as the protocol evolves. Future updates may introduce new incentive models, enhancing the benefits for those who contribute to the platform’s growth and liquidity.