On Henjin V4, protocol fees are earned through several mechanisms, primarily focusing on liquidity provision within the decentralised exchange (DEX) platform. Here’s an overview of how these fees are earned:
LP Swap Fees: Liquidity providers (LPs) earn a share of the swap fees generated by the pools they contribute to. This means whenever a trade occurs in a pool, a portion of the transaction fee is distributed among the LPs based on their share of the liquidity in the pool.
xHENJ Dividends: xHENJ holders receive a portion of the protocol fees as dividends. A % of the collected fees are redistributed to xHENJ holders. This mechanism encourages holding xHENJ for passive income.
These mechanisms ensure that participants in the Henjin ecosystem can earn rewards through various activities, including providing liquidity and holding xHENJ tokens.