Uniswap uses a pricing mechanism called the ‘constant product market maker model’. The formula (x * y = k ) is used to determine the pricing for the pair.
Read moreHow are fees paid in Uniswap?
Uniswap charges a 0.30% fee on all trades which is added to the reserve pool . When a liquidity provider burns their pool tokens to reclaim their stake of the total reserve, they receive a proportionally distributed amount of the total fees accumulated while they were staking.
Read moreHow much does Uniswap charge in fees?
Every time a trade is executed on Uniswap, liquidity providers (LPs) earn fees proportional to the amount of liquidity they have supplied. This fee is usually set at 0.3% but can be as low as 0.05% for stable assets, and as high as 1% for more exotic pairs.
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