SalmonSwap is a decentralized exchange that aims to balance the short-term and long-term interests of the liquidity provider community by providing them with durable rewards, even if they withdraw their shares from the liquidity pool.
With SalmonSwap, liquidity providers will share proportionally from the transaction fees generated by each pool that provides liquidity. However, unlike other AMM protocols, liquidity providers will continue to receive a portion of transaction fees even after withdrawing their liquidity. Each trading pair will be charged a fee of 0.3%, which will be converted into SAL tokens and then distributed among past and present liquidity providers for each pool. Of this 0.3%, 0.25% will be distributed to active liquidity providers, while the remaining 0.05% will be converted into SAL (via SalmonSwap) and distributed to SAL holders. This system ensures that early limited partners continue to receive long-term benefits even after their assets are withdrawn.
SAL holders will need to stake their tokens to benefit from the 0.05% fee distribution scheme. Rewards will be proportional to the amount of SAL staked relative to the total SAL stake pool.