Fees & Rewards Explained
Pumex runs a ve(3,3) model with two distinct reward streams. They operate in parallel and serve different participants. Understanding which stream you belong to — and how — is the starting point for making the most of the protocol.
Overview
Swap fees do not go to liquidity providers. In Pumex, 100% of swap fees are routed to vePMX voters — not to LPs. LPs earn rewards through a separate stream: oPMX emissions from gauge staking.
| Who | Earns what | From where |
|---|---|---|
| vePMX voters | Swap fees + external incentives (bribes) | Gauges they voted for, per epoch |
| Liquidity providers | oPMX emissions | Staking LP positions in the pool's gauge |
Both streams require active participation — either voting with vePMX or staking an LP position in the relevant gauge.
Swap Fees
Pumex uses a dynamic fee model — fees adjust continuously based on market conditions, asset volatility, and trading activity. There are no fixed fee tiers.
The goal is to charge more during high-volatility periods (when impermanent loss risk is elevated) and less during calm markets (keeping execution competitive). See Dynamic Fees for the full model.
Swap fee distribution:
- 100% of swap fees from a pool are routed to the vePMX holders who voted for that pool's gauge in the current epoch.
- LPs receive none of the swap fee revenue directly.
LP Rewards (oPMX Emissions)
Liquidity providers earn rewards by staking their LP position in the pool's gauge. Rewards are distributed as oPMX — a non-transferable emissions instrument.
Gauge allocations are determined by vePMX voting: pools that attract more votes receive a larger share of the weekly oPMX emission budget.
oPMX conversion paths
Once you receive oPMX, you have two routes:
- Exercise — Pay stablecoins at the protocol strike rate and receive liquid PMX. Exercise revenue is split 80% to the Strategic Reserve and 20% to operations.
- Burn (Permanent account) — Convert oPMX into a permanent veNFT with 1.0x voting weight and immediate governance participation. This path is non-redeemable.
See oPMX for the full conversion mechanics, including the default strike rate and governance range.
vePMX Voter Rewards
vePMX holders who vote on a gauge each epoch earn:
- Swap fees — a pro-rata share of all fees collected by the pools they voted for.
- External incentives (bribes) — third parties can deposit any token as a bribe on a gauge to attract vePMX votes. All bribes deposited to a gauge in an epoch are distributed to voters of that gauge.
Anti-dilution rebases are not a default solo-holder reward. Rebases are distributed to Autovote Vault participants only — solo vePMX holders are not rebase-eligible. See Emissions for the full rebase model.
See vePMX for voting mechanics, lock types, and the APR formula.
Claiming Rewards
Rewards are epoch-based — Pumex runs on weekly epochs, with a snapshot taken at Thursday 00:00 UTC.
You must have voted (or delegated) before the Thursday snapshot to be eligible for that epoch's swap fees and bribes. Votes placed after the snapshot apply from the next epoch.
To claim:
- Go to the Rewards page.
- Select the veNFT you voted with.
- Claim rewards per gauge — fees and bribes become available once the epoch flips.
Rewards accumulate per epoch and can be claimed as a lump sum after each period ends.
Emissions Schedule
Pumex is pre-TGE. Final emission parameters — weekly oPMX amount, decay rate, allocation splits between LPs, treasury, and rebases — will be published in the Tokenomics section at or around full launch.
The intended structure includes a decaying weekly emission schedule, gauge caps to prevent over-allocation to underproductive pools, and a treasury allocation for operations and protocol-owned liquidity. These are design targets, not final on-chain parameters.
See Emissions for the full intended structure, including anti-dilution mechanics and gauge cap design.
Further Reading
| Topic | Doc |
|---|---|
| Dynamic fee model | Dynamic Fees |
| oPMX conversion paths | oPMX |
| vePMX locking, voting, delegation | vePMX |
| Emissions schedule and rebase mechanics | Emissions |
| Protocol revenue and treasury strategy | Protocol Revenue |