Proposal: Change stablepool fees USDT/USDC/DAI to 1.0%, 1.0% and 1.5%, respectively
For this proposal to pass, it requires 20% quorum and 66.7% supermajority.
This proposal is expected to appear on Snapshot for voting on 2022-01-23T00:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
TLDR
- There isn’t enough evidence to conclude that there is a linear relationship between pool fee and volume, given that many other factors influence volume in the pools.
- The three stablecoins serve as an interesting experience, as we can set their pool fees to different values and evaluate the impact of the change.
- An experiment with the stablepool fees was conducted and data from a 24-day period was analysed, suggesting that a 1% fee is ideal.
- There is value in experimenting with a higher pool fee in one of the pools to understand if an upper limit where the APYs start decreasing can be found.
- This proposal seeks to change the pool fee for the USDC and USDT pools to 1.0% and DAI to 1.5%.
Motivation
This proposal is a continuation of the latest stablepool fee experiment. Data obtained from the experiment suggests that the revenue was maximised for the USDT pool, which had a 1% pool fee set, with a 170% increase in fees accrued compared to when the USDT pool fee was at 0.2% (Figure 1).
This proposal seeks to continue this experimentation by changing the pool fee for the USDC pool to 1.0% and DAI to 1.5%. The goal is to maximise profits for USDT and USDC, and experiment with the DAI pool to find an upper limit where we observe a decrease in fees obtained.
Figure 1 - Fees accrued in the USDT, USDC and DAI pools during the 12 days before the pool fee change and 12 days after the change.
Figure 2 - Accumulated volume in the USDT, USDC and DAI pools during the 12 days before the pool fee change and the 12 days after the change.
Figure 3 - Accumulated fees in the USDT, USDC and DAI pools during the 12 days before the pool fee change and the 12 days after the change.
Figure 4 - Accumulated volume and average market share for the USDT, USDT and DAI pools during the 12 days before the pool fee change the the 12 days after the change.
In conclusion, the continuation of this experiment, alongside the results of the TRAC pool one, will hopefully provide enough data to assist in choosing appropriate fees to optimize APYs for the LPs.
FOR
Change the USDT, USDC and DAI pool fees to 1.0%, 1.0% and 1.5%, respectively.
AGAINST
Keep the stablepool fees for the USDT, USDC, and DAI pools at 1.0%, 0.5% and 0.2% respectively.