Providing Liquidity
Last updated
Last updated
Tokan Exchange enables users to generate earnings via liquidity provision. By contributing liquidity to the incentivized gauges, individuals can secure a portion of the rewards designated for those gauges, proportional to the volume of liquidity they have contributed.
Liquidity Providers do not receive swap fees. Their returns come from the TKN
emissions allocated to the gauge they are staked in.
All swap fees are distributed to the veTKN holders that voted for the corresponding gauge; this leads to the pool generating more swap fees meaning a higher return for veTKN holders. This also ensures that votes are allocated to productive pools which maintains the long-term sustainability of Tokan Exchange.