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Understanding Whirlpool Fees

When a user performs a swap on a Whirlpool, a percentage of the swap input amount may be taken as a fee, allocated between liquidity providers and a protocol fee.

Total Fee​

On the protocol, the total fee collected from the user is referred as the fee-rate. It is stored as a hundredths of a basis point on the Whirlpool account.

A 0.01% (1bps) swap fee would equate to a fee_rate value of 100.

swap_fee=input_amount×fee_rate1000000\text{swap\_fee} = \frac{\text{input\_amount} \times \text{fee\_rate}}{1000000}

Fee Breakdown​

ProtocolFee​

The protocol_fee is the fee diverted to a wallet that only the WhirlpoolConfig's collectProtocolFeesAuthority can collect. Often, this is used as the treasury of the protocol hosting the Whirlpools program.

It is stored as a basis point of the total fees collected on the Whirlpool account. For example, 3% of the total swap fee is diverted to the protocol would have a protocol_fee value of 300.

protocol_fee=swap_fee×protocol_fee_rate10000\text{protocol\_fee} = \frac{\text{swap\_fee} \times \text{protocol\_fee\_rate}}{10000}

Liquidity Provider Fee​

The liquidity providers get all of the remaining fees once the protocol fee is subtracted.

LP_fee=swap_fee−protocol_fee\text{LP\_fee} = \text{swap\_fee} - \text{protocol\_fee}