Liquidity Pools

In an ETH/USDC pool, ETH's price rises sharply on other markets. What happens to the pool's mix of tokens?

• It keeps the same amounts; only the price label changes
• Traders buy the cheap ETH from the pool, so it ends up with less ETH and more USDC
• It sells its USDC for ETH to keep up with the rally

A v2 pool charges a 0.30% swap fee and a protocol fee is switched on. What share of each swap reaches LPs?

• 0.30%, the protocol fee is paid separately by traders
• 0.25%, because 0.05% of the 0.30% goes to the protocol
• 0.05%, because most of the fee goes to the protocol