DragonSwap
English
English한국어
English
English한국어
  • Introduction
    • Overview
    • Features
  • Products
    • Swap
    • Pools
      • V2
      • V3
    • Fees
    • Dashboard
  • mission
    • Core Philosophy: Contribution to the KAIA Ecosystem
    • Team
    • Roadmap
    • Partnership
  • security
    • Smart Contracts
    • Audit
  • community
    • Website
    • Medium
    • X (Twitter)
    • Github
    • Telegram Announcement
    • Contact Us
Powered by GitBook
On this page
  • Liquidity Provision & LP Tokens
  • Earning Fees
  • Understanding Impermanent Loss
  1. Products
  2. Pools

V2

PreviousPoolsNextV3

Last updated 8 days ago

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.

Binance Academy