Therefore
- Assume the protocol generates $35,000 per day in fees (numbers used here are for ease of explanation - the math is simple enough anyone can test with their own assumptions - accurate 24 fees can be seen on the UI)
- I have seen that on some dune pages the fees displayed ignore the vortex/network fee
- Total fees would be about $1,000,000 for the month
- About $500,000 BNT gets burned
- About $450,000 of TKN gets moved outside the curve in the respective pool
- About $50,000 DAI gets added to DAI bucket and distributed to LPs
- It is very easy to allow LPs to claim any supported TKN which would also further increase trading fees
This to me is the most unrealistic part of this whole proposal. You can’t just make an assumption that $1M of fees will be generated per month without any quantifiable evidence or analysis. That is just crazy!
The fees are totally dependent on trade volumes and more liquidity coming through. This proposal doesn’t give any new incentives or reasons for LPs to put in more liquidity. I think liquidity is more likely to dry up than increase due to the lack of trust, unclear pathway for recovery, and the crypto/macro bear market.
If liquidity dries up, then volumes dry up. Volumes will likely dry up faster than other AMMs because Bancor is constant product which requires more liquidity than say Uniswap or Curve.
I don’t see how making $1,000,000 in fees per month is realistic. Even if it was, we’re $30M in the hole. It will take years to make up that deficit.