Quote-token fee pools
If you supply liquidity for a token but prefer fee income in WETH, Stream and Lighthouse pools let you earn swap fees in WETH whether traders buy or sell the token. One fee denomination makes proceeds easier to track without needing to exchange token-denominated fees afterward.
The quote asset is the asset used to price the other token. It is selected when the pool begins and must be one of the pool's two assets.
One fee asset in both trade directions
Consider an illustrative TOKEN/WETH market with WETH as quote:
| Trade | How the fee is paid | Provider fee denomination |
|---|---|---|
| Buy TOKEN with WETH | Taken from the WETH paid in | WETH |
| Sell TOKEN for WETH | Withheld from the gross WETH proceeds | WETH |
In Standard and Beacon pools, fees instead follow the input asset, so the second trade earns TOKEN fees. Choose quote-token fees when one denomination is useful to you, not because it removes market exposure.
Your liquidity position still holds a changing mix of TOKEN and WETH. Fee denomination does not stop the position becoming single-sided, offset losses relative to holding, or guarantee that WETH retains value.
Understand the amount you receive
The fee is part of the exchange cost, not an extra reward created by the quote-asset choice.
For example, at a 0.30% fee rate, a gross payment of 100 quote units leaves approximately 99.70 quote units for the exchange and 0.30 for fees. When selling the base token, the same rate is deducted from gross quote proceeds before they reach the trader. A target-output quote accounts for the fee to work out the required spend.
Actual calculations use the smallest whole units of the token and round the fee upward where required. Fees are calculated across swap steps, so range crossings and splitting a trade can produce small rounding differences. Use a fresh quote for the full trade rather than adding up assumed per-trade amounts.
Review the net output, price impact and minimum receive amount together. A consistent fee asset does not make a thin market cheaper to trade.
Which fees reach liquidity providers?
Only liquidity active during a swap step earns that step's liquidity-provider share. The deployment's initial protocol setting allocates approximately one sixth of the swap fee to the protocol and the remainder to active providers, including division rounding remainder. This is a share of the fee, not a share of the trade's total value.
Governance can change the protocol share within the contract's bounds. Your own earnings also depend on trading volume and your share of active liquidity, so the fee tier is not a promised yield.
Stream offers quote-token fees with standard history. Lighthouse adds a truncated price history. To decide how your assets participate in either market, continue to Liquidity positions.