Fees

Swap Fees

In EVO, swap fees are allocated proportionally to all active liquidity positions within range at the moment a trade occurs. When the current price moves outside a position’s specified range, that liquidity becomes inactive and stops earning fees. If the market price moves back into the range, the liquidity reactivates and resumes collecting fees.

Unlike AMMs where fees are automatically reinvested back in the LP positions, EVO separates fee earnings from the pool’s liquidity. Collected fees must be claimed manually by the position owner whenever they choose to harvest their earnings.

Pool Fee Tiers

EVO supports multiple liquidity pools for each token pair, each configured with a distinct swap fee. When creating a pool, liquidity providers can select from predefined fee options such as 0.01%, 0.05%, 0.25%, and 1.00%.

In traditional AMM designs, fragmenting liquidity across separate pools is impractical because it reduces the depth of each individual market, resulting in higher slippage for traders. However, concentrated liquidity in EVO decouples total liquidity from its distribution, meaning that even fragmented pools can maintain strong execution quality if liquidity is well-placed.

By enabling fine-tuned control over price ranges and fees, EVO allows for more specialized pools tailored to different asset profiles—particularly those poorly served by a one-size-fits-all fee structure.

Selecting the Appropriate Fee Tier

We anticipate that certain types of assets will gravitate towards specific fee tiers, based on where the incentives for both swappers and liquidity providers come nearest to alignment.

Stablecoins and other low-volatility assets will often be found in low-fee pools (e.g. 0.01%–0.05%), where LPs face minimal price exposure and traders seek near-parity execution.

On the other hand, higher-risk or less frequently traded tokens are more likely to thrive in higher-fee pools (e.g. 0.25%–1.00%), where LPs are better compensated for the additional risk of impermanent loss and market volatility.