LP fees & reward accounting

Your position earns your fees

Personal LP fees accrue to the liquidity position that earned them. They are not the protocol’s holder or staking reward budget. For a two-token pool, claimable fees can include either or both assets, depending on swap direction and settlement.

HoodPools displays a USD equivalent for readability. That display is a valuation, not a promise that an LP claim pays a dollar stablecoin. The direct LP claim in this demo returns the pool’s two tokens.

A concrete $100 fee example

Assume, for one simplified full-range period, the protocol supplies 80% of active liquidity and community users supply 20%. The pool earns $100 of fees and we assume zero costs.

Only net protocol fees enter the reward pots

The proposed protocol would record its collected fees, subtract explicitly disclosed operating costs, and fund rewards with the remaining distributable amount. LP principal, unrealized token appreciation and treasury transfers must not be reported as earned fees.

The example assumes zero costs and a 50/50 holder–staker split. Both the cost policy and final allocation must be agreed before launch. Community LP fees are removed from the pool total before either protocol reward pot is calculated.

Claim personal LP fees

• Go to My positions and open the relevant pool.
• Read the individual token amounts under Your LP fees.
• Review the claim. Your principal is shown separately and remains deposited.
• Confirm the demo claim. Fee balances become zero and the claimed tokens enter the example account.
• Another claim is disabled until new fees accrue. A withdrawn position remains visible if it still has unclaimed fees.

Claim timing and new deposits

The demo does not accrue rewards with real elapsed time. Simulate a fee epoch explicitly to add one hypothetical day of fees at the fixed sample volumes and prices. Newly added liquidity only participates in future simulated epochs.

For production, fee growth must be checkpointed when ownership changes. A new depositor cannot claim old fees and a withdrawal must not erase already-earned fees. This requires tested accounting in the chosen LP manager or vault.

How to read the balances

• Deposited liquidity is principal, valued at the demo’s fixed prices.
• Unclaimed LP fees are separate token balances earned by personal positions.
• Holder and staking rewards are separate USDG-denominated demo balances.
• Claimed in this demo is a cumulative USD equivalent at the fixed example prices.
• Seeded opening rewards demonstrate the claim flow; they are not attributed to a real earning period.