Clipper adds a small spread (~10bps) to each trade. 100% of this spread goes to AdmiralDAO as protocol fees. DAO protocol fees are published by Token Terminal and are also publicly auditable on-chain.
How the Spread Works
The spread is measured by summing the positive difference between Clipper input and output on swaps, according to on-chain price oracles. This is fully verifiable on-chain, so LPs don’t need to take anyone’s word for it.
This spread generates excess returns on top of Clipper's rebalancing strategy and no impermanent loss benchmark ("benchmark outperformance"). This structure means LPs only pay fees if they profit. This is a big difference from other AMMs, which charge fees on all trades, even those that lose money for LPs.