How do I earn yield from liquidity provider fees on Stabull DEX?

The Automated Market Maker (AMM) model is designed to be transparent and community-driven. Liquidity on DEXs is provided by users who contribute funds to liquidity pools. These liquidity providers earn trading fees based on the volume of trades executed using the pool.

So if a user, contributes liquidity to the NZDS/USDC pool, they earn a portion of the trading fees that this specific pool generates. The LP reward is split between the LPs of a pool. So a less popular pool may have generated fewer fees and have fewer LPs but each LP earns a greater proportion of the pool’s fees. Vice Versa for more popular pools. The dynamic nature of LP fee share (a new user may add liquidity to the pool affecting every other LPs fee share), means that LP fees can vary greatly even in the short to medium term.

LP tokens grant holders ownership rights over the portion of the liquidity pool represented by the tokens. Additionally, holders of LP tokens are entitled to a share of the trading fees generated by the liquidity pool. These rewards are distributed to LP token holders periodically, typically in the form of additional tokens or cryptocurrency.

DeFi Protocols will sometimes internally or through partnerships with other protocols, may create options where LP tokens can be staked for boosted rewards. This is often referred to colloquially as ‘farming’. A program where users can farm Stabull LP tokens will likely be set up either 

It should be noted that LPs do not earn 100% of the fees generated by a pool. These fees are also shared with the Stabull insurance fund to cover some of Stabull’s overheads.