# Proposal to introduce a small pool standardized fee (0.3%) based on market cap ranking

**URL:** <https://gov.bancor.network/t/proposal-to-introduce-a-small-pool-standardized-fee-0-3-based-on-market-cap-ranking/2340>\
**Category:** Deprecated Proposals (NOT SUBMITTED)\
**Created:** [June 5, 2021, 1:14pm UTC](https://gov.bancor.network/t/proposal-to-introduce-a-small-pool-standardized-fee-0-3-based-on-market-cap-ranking/2340 "2021-06-05T13:14:54Z")\
**Posts on this page:** 1\
**Showing post:** 23

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**Author:** ![TheOneJM](https://avatars.discourse-cdn.com/v4/letter/t/c89c15/32.png) [@TheOneJM](https://gov.bancor.network/u/TheOneJM)\
**Post date:** [June 10, 2021, 6:01pm UTC](https://gov.bancor.network/t/proposal-to-introduce-a-small-pool-standardized-fee-0-3-based-on-market-cap-ranking/2340/23 "2021-06-10T18:01:57Z")

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The fee options for pools in Uni v3 are 0.05%, 0.3% and 1%. Industry standard is generally .3%.

As you all know, swapping on Bancor from TKN to TKN usually takes 2 swaps. So swapping from ETH to LINK currently costs .35%. With the proposed changes in mbr’s chart above, the cost will be .4%.

The ETH and LINK pools are currently Bancor’s 2 largest pools but trying out different size trades on 1inch, it’s pretty hard for Bancor to win these swaps right now.

A $10k swap from ETH to LINK goes through Bancor for 100% of the swap.  
A $100k swap from ETH to LINK drops Bancor to 40%-80% of the swap  
A $1M swap from ETH to LINK drops Bancor to 20% of the swap(!!!)  
A $10M swap from ETH to LINK keeps Bancor at 20% of the swap  
A $100M swap from ETH to LINK increases Bancor’s share to 40% of the swap  
A $1B swap from ETH to LINK stays at 40% of the swap  
A $3B swap from ETH to LINK increases and maxes out the Bancor share to 50% of the swap

This suggests that for ETH to LINK swaps, Bancor has industry leading liquidity to support large trades. However, for trades greater than $100k and less than $100 Million, the fee impacts the total cost of the swap on Bancor more than price impact of pools on other exchanges.

I believe that Bancor would be in a better position if we match the costs of our competitors instead of charging a premium that is probably costing Bancor quite a bit of volume.

My proposal is that we approach fee changes from the trader point of view and not the pool’s. I propose that we set our fee structure so that our larger token pools have their fees set to .15% and our smaller token pools to set their fee to .85%.

This would result in swaps like ETH \<-\> LINK to cost a total of .3%.

A swap from a large tkn to a smaller tkn like ETH \<-\> WOO will have a total cost of 1%.

Finally, small tkn to small tkn like WOO \<-\> MTA will have a total cost of 1.7%.

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_[View the full topic](https://gov.bancor.network/t/proposal-to-introduce-a-small-pool-standardized-fee-0-3-based-on-market-cap-ranking/2340)._
