V2
DragonSwap V2 pools are built on the Uniswap V2 model, allowing decentralized liquidity provision and earning opportunities.
Liquidity Provision & LP Tokens
By depositing assets into a liquidity pool (e.g., KAIA - USDT), users receive LP (Liquidity Provider) tokens, representing their share of the pool. When withdrawing liquidity, users redeem LP tokens and receive their assets along with earned fees.
Earning Fees
A 0.3% trading fee applies to swaps using V2 pools, distributed as follows:
0.24% to liquidity providers
0.06% to DragonSwap’s treasury for platform maintenance
Understanding Impermanent Loss
Liquidity providers should be aware of impermanent loss, which occurs when the value ratio of deposited assets changes compared to the time of deposit.
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