# APY mechanics

Lender yield on Atomic comes from two sources:

**Pool fees** \
When a trader opens a position, the capital is deployed into DEX pools via aggregators in the traded pair. While the position is active, the liquidity earns fees from swap activity in that pool. These fees accrue continuously to the lending pool.

**Protocol open/close fees** \
Each time a position is opened or closed, a 10 bps fee is charged. A portion of this fee is distributed to lenders.

**Revenue distribution**\
Lenders receive **25% of all platform revenue,** combining both fee sources above. At current trading volumes, this translates to **10-40% APY** on deposited USDC.

| Revenue source           | Lender share                |
| ------------------------ | --------------------------- |
| Uniswap pool fees        | Included in 25%             |
| Protocol open/close fees | Included in 25%             |
| **Total lender share**   | **25% of platform revenue** |

Yield is distributed continuously and reflected in real time in your lending dashboard.