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So, lately i've been doing research about gas fees and how they work. I got the most part but there's something I don't yet understand.

The theory of gas fees in ETH is that whenever you do a transaction, the miner that includes the transaction in the block and creates it, gets the transaction fee as a reward. Great.

However, in DEXs like uniswap, it only says that it charges a 0.30% fee that goes to the liquidity providers. Does that mean that instead of going to the miners, the fee goes to the liquidity providers? Or is this 0.30% an additional fee on top of the miners fees? I can't find the answer anywhere. So if anyone knows how this works, i would really appreciate it.

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However, in DEXs like uniswap, it only says that it charges a 0.30% fee that goes to the liquidity providers.

You are mixing too separate concepts

  • Gas fee goes to Ethereum transaction miners for including your transaction in a block in Ethereum blockchain

  • Uniswap fee goes to the liquidity providers of Uniswap pair

You pay both when you swap at Uniswap or similar.

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    Thank you very much! I couldn't find this answer anywhere.
    – F_Bass
    Apr 22, 2021 at 20:42

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