When executing a swap on Pool Party, two distinct fees apply. Understanding how each one works and which token it is charged in is essential for accurately estimating the true cost of any trade.
Network Fee
The Network Fee is the cost of processing your transaction on the Canton Network. This is equivalent to what other blockchain ecosystems refer to as a gas fee. Regardless of the token pair you are trading or the direction of your swap, the Network Fee is always charged in CC. This is a fixed characteristic of the Canton Network and applies universally across all Pool Party trading pairs.
Pool Fee
The Pool Fee is a protocol-level fee charged by the liquidity pool on every swap. It is distributed to liquidity providers as a reward for supplying the assets that make trading possible, a core incentive mechanism in any AMM-based protocol. Unlike the Network Fee, the Pool Fee is always deducted from the token you are swapping from, meaning it is taken from your input token before the trade executes.
Summary
Fee | What It Covers | Always Paid In |
Network Fee | Canton Network transaction processing | CC |
Pool Fee | Liquidity provider reward | Token you are swapping from |
Important: Always ensure your wallet holds sufficient CC to cover the Network Fee before initiating a swap, regardless of which token pair you are trading. |
PoolParty Tip: How Fees Work Across All PoolParty Pairs
The Network Fee is always paid in CC, regardless of the token pair or direction of the swap. The Pool Fee is always deducted from the token you are swapping from.
Pair | Direction | Pool Fee | Network Fee |
CC / CUSD | CC → CUSD | CC | CC |
CC / CUSD | CUSD → CC | CUSD | CC |
CC / USDCx | CC → USDCx | CC | CC |
CC / USDCx | USDCx → CC | USDCx | CC |
USDCx / CUSD | USDCx → CUSD | USDCx | CC |
USDCx / CUSD | CUSD → USDCx | CUSD | CC |
FAQs
Why does the Network Fee always cost CC?
The Network Fee is a Canton Network-level transaction cost and is denominated in CC, the native token of Canton Network. This applies to all on-chain activity regardless of the assets being traded.
Which token is the Pool Fee deducted from?
The Pool Fee is always deducted from the token you are swapping from, your input token. It is taken before the trade executes, so the amount you receive is calculated after the fee has been applied.
Do fees change depending on which token pair I trade?
The Network Fee is always CC, regardless of the pair. The Pool Fee always comes from your input token, so it will vary depending on the direction of your trade. Refer to the fee table above for a full breakdown of every pair and direction.
Will I always need CC in my wallet to swap?
Yes. The Network Fee is always charged in CC regardless of the token pair. Even if you are swapping between CUSD and USDCx, you must hold sufficient CC in your Canton Wallet to cover the Network Fee or the transaction will fail.
Who receives the Pool Fee?
The Pool Fee is distributed to liquidity providers, users who have deposited tokens into the pool. This fee is the primary incentive for providing liquidity and is proportionally distributed based on each provider's share of the pool.