# Fee Distribution

Nabla generates fees based on liquidity usage, levying a fee on every swap. These are currently split in the following way (details depend on the chain and the respective Swap Pool):\
\- 20-30% go to the LPs of the respective Swap Pool\
\- 40-80% go to the LPs of the associated Backstop Pool\
\- 0-30% are being deducted as protocol fees\
\
The deducted protocol fees may be used e.g. to:

* buy back $NABLA to increase the treasury holdings
* buy back $NABLA and use it to increase the liquidity in the $NABLA-$ETH pool
* buy back $NABLA and distribute it amongst stakers
* deposit protocol-owned liquidity into the Backstop Pools
* finance gas and infrastructure costs and further protocol development<br>