🪙Liquidity Pool Rewards

On Beam, a liquidity provider's income depends on the type of pool that they are providing liquidity to. There are two types of pools on Beam:

Beam Pools Beam Pools are a small subset of pools specifically responsible for cross-chain swapping, and are not staked in ve(3,3) reward pools. Instead, the liquidity providers receive 85% of the trading fees that their positions generate. The protocol receives the other 15%, which is reinvested into the Beam ecosystem, specifically to support the ve(3,3) flywheel in various ways.

ve(3,3) Pools If both tokens of a liquidity pool's pair are whitelisted by the team to be staked in a reward pool, the liquidity providers of that pair will not receive trading fees, but instead receive $BEAM emissions.

veBEAM holders who vote to incentivize a particular reward pool with emissions will receive the trading fees and bribes from the liquidity pair that they voted for. This creates the incentives for veBEAM lockers to vote for the liquidity pools that produce the highest volume in trading fees. The amount of fees earned by veBEAM holders depends on the pool that they vote for. 85% of all trading fees on ve(3,3) liquidity pools are sent to its respective reward pool, and the remaining 15% go to the protocol multisig to fuel initiatives that benefit the Beam ecosystem.

Through this mechanism, the system provides veBEAM holders with the power to incentivize trading fees instead of total liquidity. The destination of $BEAM emissions is in the hands of the lockers.