LP Rewards

As a Liquidity Provider (LP) on DotSwap, you have the opportunity to earn rewards through swap fees and LP points. This guide outlines how the reward system works and how you can benefit.

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LP Fee Rewards

Transaction Fee Structure:

• Total default fee: 2.0% per swap (split in a 4:1 ratio)

  • 1.6% goes to Liquidity Providers

  • 0.4% goes to DotSwap (Service Fee)

Reward Distribution:

• Fees are shared among all LPs proportional to their pool share

• Rewards are credited directly to your V1 balance after each swap

• Withdrawable anytime or usable for trading

Before 2024-07-15: LP rewards were added to the liquidity pool and can be claimed when you remove liquidity.

After 2024-07-15: LP rewards are automatically credited to your V1 account.

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LP Points System

How to Earn LP Points:

1. When BTC or NUSD swap fees are generated.

2. When providing liquidity to a trading pair for the first time.

Xverse Wallet users receive additional LP points when they provide liquidity to a trading pair for the first time.

Future LP Points:

• LP points will be convertible into DOTSWAP•DOTSWAP tokens.

• This provides long-term value for early and consistent LPs.

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Why Become a Liquidity Provider?

• Earn passive income from swap fees.

• Accumulate LP points for future token rewards.

• Support the DotSwap ecosystem and improve liquidity for Runes, BRC-20, and other BTC-native assets.

Providing liquidity carries risks such as impermanent loss. Always do your own research (DYOR) and understand the risks before participating.

Start providing liquidity on DotSwap today and make the most of your on-chain rewards!