Fees
Beets generates revenue through multiple fee mechanisms, ensuring a sustainable and balanced ecosystem. These fees are collected from key activities on the protocol, including swaps, yield-bearing assets, and flash loans. By leveraging these revenue streams, Beets maintains its long-term viability while rewarding liquidity providers and participants. Below is a breakdown of how each fee contributes to the protocol's growth.
Fee Type
Swap Fees
Every trade on the protocol incurs a swap fee, which varies by pool based on the underlying assets and AMM logic. A portion of this fee is distributed to liquidity providers, while the rest is collected as a protocol fee for Beets. The protocol applies a percentage-based fee on the total swap fees collected, with this percentage varying across the different networks where Beets is deployed.
Yield Bearing Fees
When a yield-bearing (YB) token is deposited into a Liquidity Pool on the DEX, Beets charges a fee on the yield generated. This unique protocol fee creates a sustainable revenue stream directly tied to TVL, reducing dependence on swap volume for long-term viability. This mechanism is exclusive to Beets and Balancer—no other DEXs offer this level of flexibility. Similar to swap fees, this interest-bearing fee applies across all networks where Beets is deployed.
Flash Loan Fee
A small fee is collected as interest if users utilize a flashloan on the protocol.
Summary of Protocol Fees on Fantom, Sonic and Optimism
On all chains, the percentage of the total fee that flows to the protocol is taken in different proportions. You can see the breakdown of fees below:
| Fee type | Protocol Fee on Fantom | Protocol Fee on Sonic | Protocol Fee on Optimism |
|---|---|---|---|
| Swaps | 50% | 25% | 50% (Half goes to Balancer) |
| IB Yield | 50% | 25% | 50% (Half goes to Balancer) |
| Flash loan | 0.03% | 0.03% | 0% |
Protocol Fee Distribution
Protocol fees are managed based on the Quarterly Budget.