How Does the 'Fee Structure' Differ between a Centralized Exchange (CEX) and a Decentralized Exchange (DEX) AMM? ▴ Learn

How Does the ‘Fee Structure’ Differ between a Centralized Exchange (CEX) and a Decentralized Exchange (DEX) AMM?

CEX fee structures typically use a maker-taker model, where 'makers' (providing liquidity) pay lower or zero fees, or even receive rebates, while 'takers' (removing liquidity) pay higher fees. DEX AMMs, conversely, charge a flat percentage fee on all trades.

This fee is then distributed proportionally to the liquidity providers (LPs) in the pool, which is the core incentive mechanism for the AMM model.

How Does ‘Liquidity Mining’ Differ from Standard Yield Farming?

How Do Dynamic Fee Mechanisms Adjust Based on the Bonding Curve’s Usage?

How Do Transaction Fees Incentivize Miners in PoW?

What Is the Difference between a Market Maker and a Market Taker in Crypto?