TRAC Pool - Fee Changes
TLDR; We increased the TRAC Fees and made LPs additional $$$ even though the volume dropped.
Intro
Recently, we have been experimenting with changes to the fee rate on the TRAC pool.
An initial fee change in early December from 0.2% to 0.5% doubled the returns for LPs, so we set out to incrementally increase the fee over the course of a month. The following data shows the volume, ethereum market share and fees accrued for each of the fee changes implemented on the TRAC pool.
The plots show the average daily volume, market share (on ethereum) and the fees accrued. The maximum time frame (with equal duration either side) was used for calculations.
Results
Raw data: 2022-01-19-TRAC Fee Change Analysis - Google Sheets
Summary
The highest daily average fees were obtained at the highest (4%) fee rate - up over 8x from before the fee changes begun. This corresponded to a decrease in overall volume by approximately 55 - 65 % (comparing to volume before fee changes or max volume)
Data Acquisition
Bancor Trades (all):
select *
from dex.trades
where project = 'Bancor Network'
and block_time BETWEEN '2020-01-01' and now() - INTERVAL '1 day'
Fee change events (all):
select *
from bancor."StandardPoolConverter_call_setConversionFee"
where call_success = True
Daily DEX Volume for specific TKN:
