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The common conception is that Uniswap LPs get more fees as they stay longer in the pool. I have been searching everywhere for a clear explanation of how fees work, and could not find information to confirm this conception is correct.

Take this example: Alice owns 100% of a new pool that progressively generates 10k in swap fees. Bob hops in and takes 90% of the pool, then exits right away. He'd take 9k in fees, and just 1k remaining for Alice? But if Alice had exited before Bob enters in the pool, she'd get 10k in fees. If this is correct, providing liquidity for a shorter period would entitle the LP to more fees.

Can someone clear this out?

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  • Fees awarded to LPs are based on the trade-volume rather than the actual investment-time. The more volume is being traded, the more fees accumulate in the pool (i.e., remain in the pool), and so when an LP withdraws, he/she gets a part of that. Oct 5 '20 at 7:18
  • So would you confirm my example above is correct? Oct 5 '20 at 7:33
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fee on uniswap just like dream never come true. you only profit when more volume+ eth price go up + token pair going up too.. if none of this then i'm 100% you take some lost. uni-v2 token never cumulated fee if it ever your lp token uni-v2 will get more than when you are in , underlying assert? but those are just pure lie. they also some factor arb bot robbed those profit from lp. see this screenshot just 1 day pool and how uniswap showing $2600 profit, there no such thing it just dream. $2600 fee just 1 days??

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