Proposal: Increase MKR-BNT Fees to 0.2% (from .1%)

This proposal is expected to appear on Snapshot for voting on 2021-11-14T12:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

The original thread where the fees were lowered (from .5% to .1%) is here:

this happened towards the end of June and the fee change went into effect a few weeks later. A quick look at volume and fees doesn’t suggest that much changed after the lower fees (from .5% to .1%) went into effect:

volumes seem to have actually gone down from three months prior (but this isn’t a good comparison in my opinion). Note that April was when LM went active on this pool and the month that followed (May) was a month when DeFi volume was up across the board.

We did have a few days towards the end of May and July when crypto markets took a tumble and BTC went down to $30K levels.

The weekly fees or this pool have hovered between 2K-4K after the change. Lower fees could also be due to a loss of liquidity in this pool after LM ended (I think it was double of current levels, around ~20m):

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I am proposing that we raise the pool fees to .2% to see if this will affect weekly fees generated by this pool:

I don’t expect the liquidity in this pool to decrease since it has been at these levels for a few months and this should give us some useful data on whether a .2% fee will make it more profitable for LPs.