# 2.2 - How nest Works

<figure><img src="/files/2hMiMpNlB31YVv1ke69r" alt=""><figcaption></figcaption></figure>

nest brings together three groups with aligned incentives: **Traders, Liquidity Providers, and Governance Participants**. Each benefits when the protocol grows, creating a positive-sum system.

Each layer has one job and the magic is how they compound into a single flywheel.

{% hint style="success" %}
**LPs earn NEST emissions — not trading fees.** This distinction is central to how nest functions as a MetaDEX.
{% endhint %}

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### Key mechanics at a glance

<table><thead><tr><th width="187.19921875">Mechanism</th><th width="283.76171875">Who Benefits</th><th>How</th></tr></thead><tbody><tr><td><strong>Trading fees</strong></td><td>veNEST holders</td><td>100% of swap fees, claimable from Dashboard</td></tr><tr><td><strong>NEST emissions</strong></td><td>LPs</td><td>Weekly NEST tokens, proportional to pool vote share</td></tr><tr><td><strong>Bribes</strong></td><td>veNEST voters</td><td>External tokens paid by protocols to attract votes</td></tr><tr><td><strong>HYPE Engine</strong></td><td>Protocol treasury / HEV holders</td><td>~40% of fees accumulate as MEGAHYPE</td></tr><tr><td><strong>Assistance Fund</strong></td><td>Protocol (NEST buybacks)</td><td>USDH revenue funds permanent buyback mechanism</td></tr></tbody></table>


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