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BreakingApril 13, 2026

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Overview

LP swap fees are no longer auto-compounded into pool reserves. Instead, the LP fee portion is transferred to the Yield Distribution reward vault during each swap. LP holders accumulate rewards in their active rewards wallet and claim them manually — the same flow used for OT token yield. This change ensures that pool capitalization is never diluted by fee extraction, and provides LP holders with a unified, transparent reward experience.

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What Changed

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Before (Auto-Compound Model)

fee_lp → stays in pool reserves (auto-compounds)
         LP holders benefit passively via increased reserve value
         No explicit claim needed

reserve_in  += amount_in - fee_protocol - ot_treasury_fee  (if input=RWT)
reserve_out -= amount_out + fee_protocol + ot_treasury_fee
// LP fee stayed in reserves — not subtracted
Problems:
  • LP fee was invisible to the user — no explicit reward tracking
  • Fee extraction from swap amount reduced effective pool depth
  • No unified reward experience — OT yield claimed separately from LP income

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After (Per-Pool Fee Vault, Instant Claim)

fee_lp → transferred to pool's fee_vault (RWT account owned by pool PDA)
         LP holders claim proportionally via claim_lp_fees
         No vesting, no merkle proof, no off-chain server

// Fees charged ON TOP — pool reserves stay intact:
reserve_in  += amount_in   (full amount enters pool)
reserve_out -= amount_out_gross  (full gross amount leaves pool)
// All fees are external to reserves
Benefits:
  • Pool capitalization is never reduced by fees
  • LP holders see explicit, growing reward balance — claimable instantly
  • Simple on-chain accounting: cumulative_fees_per_share (O(1) per holder)
  • No off-chain dependency — fully on-chain fee distribution
  • OT yield continues to auto-compound into pool reserves (deeper liquidity)

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Fee Flow by Swap Direction

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User Sells RWT (input = RWT)

Fees are charged on top of the swap amount. User’s wallet is debited for amount_in + fee_total + ot_treasury_fee. 
fee_total       = amount_in × fee_bps / 10,000
fee_lp          = fee_total × lp_fee_share_bps / 10,000
fee_protocol    = fee_total - fee_lp
ot_treasury_fee = amount_in × OT_TREASURY_FEE_BPS / 10,000  (OT pairs only)

user_total_debit = amount_in + fee_total + ot_treasury_fee
amount_out       = constant_product(amount_in)  // full amount_in used
Token flowAmountDestination
User RWT → Pool vaultamount_inPool reserves (full, no deduction)
User RWT → Pool fee_vaultfee_lpClaimable by LP holders via claim_lp_fees
User RWT → Areal Financefee_protocolProtocol revenue
User RWT → OT Treasuryot_treasury_feeProject treasury (OT pairs only)
Pool vault → Useramount_outUser receives output token

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User Buys RWT (input = OT/USDC)

Fees are deducted from gross RWT output. User receives net amount after all fees. 
amount_out_gross = constant_product(amount_in)
fee_total        = amount_out_gross × fee_bps / 10,000
fee_lp           = fee_total × lp_fee_share_bps / 10,000
fee_protocol     = fee_total - fee_lp
ot_treasury_fee  = amount_out_gross × OT_TREASURY_FEE_BPS / 10,000  (OT pairs only)

amount_out = amount_out_gross - fee_total - ot_treasury_fee
Token flowAmountDestination
User → Pool vaultamount_inPool reserves
Pool vault → Pool fee_vaultfee_lpClaimable by LP holders via claim_lp_fees
Pool vault → Areal Financefee_protocolProtocol revenue
Pool vault → OT Treasuryot_treasury_feeProject treasury (OT pairs only)
Pool vault → Useramount_outUser receives net RWT

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LP Reward Claim Flow

LP fee rewards use a per-pool fee vault with cumulative_fees_per_share accounting — fully on-chain, no off-chain dependencies:
1

Swap Occurs

During each swap, fee_lp (in RWT) is transferred to the pool’s fee_vault. The contract updates: cumulative_fees_per_share += fee_lp × PRECISION / total_lp_shares.
2

Instant Availability

Rewards are available immediately after each swap. No vesting, no merkle tree rebuild, no off-chain server. Fully on-chain O(1) accounting.
3

User Claims

LP holder calls claim_lp_fees on the DEX contract. Claimable amount: shares × cumulative_fees_per_share / PRECISION - fees_claimed. RWT transferred from fee_vault to holder’s RWT ATA.
Two reward streams for LP holders:
StreamSourceMechanismAvailability
LP Swap FeesPer-pool fee vaultclaim_lp_fees (on-chain accounting)Instant
OT YieldYield Distributioncompound_yield (auto-compounds into reserves)Passive (increases LP value)

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Nexus (Areal Finance LP) Changes

The Nexus PDA — Areal Finance’s internal LP management — is simplified:
BeforeAfter
nexus_withdraw_profits — principal tracking, profit = ATA balance - principalnexus_claim_rewards — claims LP fees from pool fee vault to Areal Treasury
principal_usdc, principal_rwt state fieldstotal_deposited_usdc, total_deposited_rwt (tracking only)
Principal permanently locked, only profit withdrawableLP fee rewards claimed via cumulative_fees_per_share, no principal locking needed

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Reserve Impact

MetricBeforeAfter
Pool reserves after swapReduced by protocol + OT treasury feesUnchanged — all fees external
LP fee in reservesYes (auto-compound)No — sent to YD
Pool capitalizationAffected by fee extractionPreserved — fees on top
LP reward visibilityImplicit (higher reserve value)Explicit (claimable balance)

Native DEX

Full contract documentation with updated fee architecture.

Yield Distribution

Reward vault, merkle claims, and vesting mechanics.