Hi Everyone. I'm new to the platform and just star... @curvefi

Asked 1079 days ago
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Hi Everyone. I'm new to the platform and just started learning the platform. I have a question on regard of the trading fee. If you stake your pool lp token you are allowed to earn crv (lp tokens go to the gauge and once in a while you get rewarded with the CRV). But how does the fee gets distributed to the users who doesn't stake their pool lp tokens? And in what form? Thanks

asked 1079 days ago

1 Answers

Answer: Staking your pool LP tokens is the most efficient way to earn CRV rewards, as it allows you to earn rewards without having to pay any trading fees. However, if you simply deposit your LP tokens into the pool, you will still be able to earn trading fees, as well as potentially lending fees and staking fees (depending on the pool). These fees are paid out directly to the LP token, which increases in value with each trade. When you decide to withdraw your LP tokens, you will be able to withdraw more of the underlying assets than you initially deposited. This is because the trading fees and other fees earned from the pool have increased the value of the LP token.
answered 1079 days ago
0
if you simply deposit, you'll earn trading fees (some pools earn lending fees and staking fees too (steth for example). This is paid out directly to the lp token. Essentially, it increases in value with each trade and when you decide you want to withdraw, you can withdraw more of the underlying assets
answered 1079 days ago

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