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The protocol has two main revenue sources:

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Yield Accrued

Exponent collects a 5.5% fee on yield distributed to Yield Tokens (not from the initial investment). This fee is applied only to the yield earned, not upfront. For example, with an average yield of 10%, traders would earn approximately 9.45% net yield after fees.

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AMM fees

Like any AMM, trading through Exponent’s AMM incurs swap fees, which can be found in the details of the Income/Farm forms. 65% of the trading fees are distributed to liquidity providers. There are no fees deducted from the underlying yield or fixed yield generated by liquidity providers’ assets. Deposits and withdrawals do not incur protocol fees, but single asset operations that involve selling part of the pool may be subject to slippage and AMM fees.