# Proposal: Set trading fees to 1% on LPL-BNT pool from current .1%

**URL:** <https://gov.bancor.network/t/proposal-set-trading-fees-to-1-on-lpl-bnt-pool-from-current-1/3267>\
**Category:** DAO Archive (SUBMITTED)\
**Created:** [December 24, 2021, 8:03am UTC](https://gov.bancor.network/t/proposal-set-trading-fees-to-1-on-lpl-bnt-pool-from-current-1/3267 "2021-12-24T08:03:06Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![glenn](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/glenn/32/1720_2.png) [@glenn](https://gov.bancor.network/u/glenn)\
**Post date:** [December 24, 2021, 8:03am UTC](https://gov.bancor.network/t/proposal-set-trading-fees-to-1-on-lpl-bnt-pool-from-current-1/3267/1 "2021-12-24T08:03:06Z")

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### This proposal is expected to appear on Snapshot for voting on 2021-12-26T17:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

**TLDR**

- This proposal seeks to **increase** the pool fees from **.1%** to **1%** on the **LPL-BNT** pool. We have the largest amount of liquidity for this token by far (~23 times as much as the next largest pool) and can earn more profits for LPs by doing so. This would be to the detriment of arb bots that are otherwise profiting from the low fees on this pool ATM.

**For**

1. A higher conversion fee will bring in more trading fees for this pool and be more profitable for **LPL** LPs.

**Against**

1. We should not increase the pool fees

**Abstract**  
There are currently **~110K $BNT** and **~71.3K $LPL** tokens in the **BNT-LPL** [pool](https://etherscan.io/address/0x49BfE711fbd3185969AEaa8A0A8a54c63951fA7D). This has resulted in a pool that has roughly **~800K** in liquidity. This proposal seeks to **increase** the pool fees from **.1%** to **1%** as we have the largest amount of liquidity for this token by far (~23 times as much as the next largest pool on Uniswap V3)

 ![image](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/6/6ebf550d6415c6f71973cc3640820c53e898bf95.png)

**Motivation**

The second-largest pool for **LPL** is on Uniswap V3 and it is paired with **ETH**. Pool depth is roughly **38K** and fees are set at **1%** :

 ![image](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/5/5cf0b0734e77ccfbd63d10686310eb7683e48712.png)

There is also a much smaller size pool on Uniswap V2 with 20K in liquidity:

 ![image](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/8/84c4f59739612f668dac4328e238254c11076f5d.png)

This pool shares some similarities to the TRAC **strong text** pool in which we have the largest amount of liquidity for a specific token. This means that the observations which we will gather from the following fee change schedule:

> [@Proposal: TRAC-BNT fee change schedule and performance analysis](https://gov.bancor.network/t/proposal-trac-bnt-fee-change-schedule-and-performance-analysis/3239):
>
> Proposal: TRAC-BNT fee change schedule and performance analysis For this proposal to pass, it requires 35% quorum and 66.7% supermajority. This proposal is expected to appear on Snapshot for voting on 2021-12-19T17:00:00Z (UTC). Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision. TLDR Schedule to follow 1.0%-2.0%-4.0%-2.0%, with weekly changes. We will analyse TRAC Daily Volume, Daily fees, Total Volume and Total Fees vs fee change data on B…

might prove to be useful for this pool in the future. From my personal observations and experience, having a 1% fee for this pool is reasonable for this token given the liquidity depth and also because we would be at the same conversation fee as Uniswap V3 as well.