Why 100% of Fees to Lockers Matters
Most DEXes keep a slice of every trade. Here is what changes for a token holder when the protocol keeps nothing, and what it costs the protocol.
Almost every DEX takes a cut. A trader pays 0.30%, the liquidity provider receives 0.25%, and the protocol keeps the rest. It is unremarkable and it is usually buried in documentation.
Alandale keeps none of it. This article explains what that changes, and is honest about what it costs.
Who gets paid what
| Model | Trader pays | LP gets | Protocol keeps | Token holder gets |
|---|---|---|---|---|
| Typical AMM | 0.30% | ~0.25% | ~0.05% | Nothing |
| Typical ve(3,3) | 0.30% | Emissions | A slice | Most of the fee |
| Alandale | Dynamic | Emissions | Nothing | All of the fee |
The row that matters is the last column. On a conventional AMM, holding the governance token entitles you to governance and nothing else. Fee revenue exists but does not reach you.
What the mechanism actually is
Trading fees route from the pool to the community vault, then to the gauge, then to the veLUTE holders who voted for that gauge. Lock LUTE, vote, receive the fees the pools you backed generated.
Two consequences that are easy to miss:
Your vote is an investment decision, not a preference. You are choosing which pool's fee stream to own for the epoch. Voting for a pool with high emissions but no volume earns you emissions and no fees.
Fee revenue is uncorrelated with token price. Emissions APR falls if the token falls. Fee APR does not — it is denominated in the assets actually being traded. In a drawdown, the fee half is what remains. The split per pool is in How to Earn Yield on Tokenized Stocks.
Why give all of it away?
Because a DEX's scarcest resource is not revenue — it is liquidity and the people willing to commit to it. Paying out 100% of fees is the most direct way to buy both, and it aligns the protocol with the holders rather than against them.
It also makes the incentive honest. A protocol taking a cut has a reason to prefer volume over LP outcomes. One that keeps nothing does not.
What does that look like today?
Twelve pools, $173,552 of TVL, and every dollar of trading fees flowing to lockers. We publish fee APR and emissions APR separately per pool so the split is visible rather than blended into a single flattering number.
The share going to lockers is fixed at 100%. It does not need to grow — the volume does.
Where Alandale fits
This is where Alandale fits — it is the design, not a feature.
Alandale is the only ve(3,3) venue on Robinhood Chain, which means it is the only place where supplying liquidity to tokenized equities pays you in anything beyond the raw fee.
The mechanics of locking are in ve(3,3) Explained for RWA Liquidity, and the venue-by-venue picture in Every DEX on Robinhood Chain, Compared.