Whenever liquidity is deposited into a pool, special tokens known as liquidity tokens are minted to the Liquidity Providerโs address, in proportion to how much liquidity they contributed to the pool. These tokens are a representation of a Liquidity Providerโs contribution to a pool. Whenever a trade occurs, the 0.3% fee is levied and is distributed pro-rata to all Liquidity Providers in the pool at the moment of the trade. The user is able to claim the fees when they take their assets back from the protocol.