This proposal is expected to appear on Snapshot for voting on 2022-05-01T15:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
For this proposal to pass, it requires a 20% quorum and 66.7% supermajority.
TLDR
- This proposal seeks to increase the pool fees on the MONA pool from 0.2% to 1%.
- An increased pool fee will help siphon more profits from arbitrageurs to the protocol and most likely not affect volume therefore increasing APYs for the LPs in the pool.
Abstract
The Deepest MONA DEX pools on Ethereum are:
The MONA/ETH 0.2% Bancor pool with $428k liquidity
The MONA/ETH 0.3% Uniswap v2 pool with $216k liquidity
Motivation
Experiments and changes in fees should happen for tokens that Bancor dominates in liquidity. We have learned that we can have higher fees on pools where we have the largest moat (e.g. wNXM, AMP, TRAC, etc…). The reasons to pursue a higher fee in the MONA pool are:
- The majority of MONA liquidity resides on Bancor and trades are therefore routed in our direction due to lower price impact.
- Increasing the pool fee will help siphon more profits from arbitrageurs to the protocol.
The MONA pool’s weekly volume and fees since the beginning of the year are shown in Figures 1 and 2.
Figure 1 - Weekly MONA pool volume since the beginning of the year.
Figure 2 - Weekly MONA pool fees since the beginning year.
Conclusion
An increase in the MONA pool fees should lead to higher APY for LPs and the protocol.
For
- Increase the pool fee in the MONA pool from 0.2% to 1%.
Against
- Keep the pool fee in the MONA pool at 0.2%.