📑DEX Fees: Where Does Your 0.3% Actually Go? •••••••••••••••••••••••••• You Pay a Fee on Every Swap. Almost Nobody Asks Where It Goes. Every time I swap on a DEX, there's a small fee i get to pay for the trade to be successful. Usually somewhere around 0.3%, give or take depending on the pool. I used to just accept that as "the cost of doing business" and never thought about where it actually lands. It's worth knowing, because it explains a lot about how DEXs are actually designed. Most of that fee doesn't go to the protocol team. It goes straight to the liquidity providers, the people whose tokens are sitting in the pool making your trade possible in the first place. That's the core deal of an AMM-based DEX. you pay a small cut on your swap, and that cut is what makes it worth someone else's while to keep capital parked in that pool instead of just holding it in a wallet. Different pools charge different rates, and it's not random. Stablecoin-to-stablecoin pools like USDT to USDC usually carry much lower fees, because the price barely moves between the two assets, so there's less risk for the liquidity provider to be compensated for. More volatile or exotic pairs tend to sit at the standard rate or higher, since the liquidity providers are taking on more price risk by being in that pool. Some protocols also route a small slice of that fee to a treasury or a token buyback instead of sending 100% of it to liquidity providers. its worth checking before you assume every basis point is going straight to LPs. So in essence, the fee isn't the protocol taking a cut out of your trades. It's the price of borrowing someone else's liquidity for a few seconds. Once you see it that way, comparing DEXs wont just about who has the lowest fee, it'll be about who's using that fee structure to actually attract enough liquidity to give you a good price in the first place. $STON