Benefits of Liquidity Provider

Benefits of being Liquidity Provider on SakeSwap

  1. SakeSwap charges a 0.3% fee on each transaction. 0.25% goes directly to the liquidity providers. This fee is split by liquidity providers proportional to their contribution to AMM liquidity pool.

    Swapping fees are immediately deposited into liquidity pool. This increases the value of LP tokens, functioning as a payout to all liquidity providers proportional to their share of the pool. Liquidity Providers will collect the fees when removing liquidity from the AMM liquidity pool.

  2. SakeSwap improves the design of AMM in terms of slippage capture which can increase 50% of incomes for Liquidity Providers. In the case of spatial arbitrage, the AMM collects 50 % slippage capacity from arbitrage traders. As a result, the other 50% will be shared among liquidity providers.

  3. SakeSwap supports Yield Farming/ Liquidity Mining for Liquidity Providers. LPs can stake the LP token to earn extra $SAKE rewards. The farming pool daily APY up to 600%+.