default fee for every pool is 0.2%. default for eth pool is 0.1%
the fee for pools should be lowered by 0.05% every month if
- 24h volume is constantly below 1% (50k for 5M liquidity)
- liquidity of the pool is above 5M
- fee is above 0.05%
I do think we should look to adjust poorly performing pools, but I don’t think the metric suggested is appropriate. It is better to consider each pool on its merits, relative to total volume being traded, and whether the Bancor pool is competitive in terms of swap fee and slippage. But even then this is not a simple comparison as we can’t do a direct compare since we use 2-leg trade paths.
we can assume that slippage is under control for pools with 5M liquidity and compareable to other AMMs. i check the data on slippage and trade size later to provide more accurate numbers
i want to target pools which have or had LM active. in fact it should come with LM. once active but doesnt generate volume, fees should be lowered after 30 days in LM. even fees of 0% are thinkable if it generates additional volume for the entry pool (eth)
Broadly I agree that large pools with liquidity over some threshold have minimal slippage. I really like the idea of dropping some pools with LM rewards active to 0% swap fee. The most compelling pool to do this for would be the BNT/ETH pool. We have already raised the swap fee to 0.15% and returned it to 0.1% with what I believe is little compelling evidence that it made much of a difference. It would be great to drop it to 0% for 2 weeks so the sole compensation for LPs becomes LM rewards. This will drop a large number of significant tradepaths with ETH at one end by 0.1%.