Summary
Turn on Saddle pool admin fees (vote in poll below for what % admin fee)
Motivation
LPs have been receiving 100% of swap fees during initial liquidity bootstrapping. Now that SDL token is live and pools are incentivized, there’s no longer a need to give 100% of trading fees to LPs.
An admin fee would also help to build protocol treasury.
Specification
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Admin fee would go to protocol treasury
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Putting out a poll to figure out what is the appropriate fee: 50%, 33.3%, or 16.7% (vote below)
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E.g. 50% admin fee = 2 BPS (i.e. trading fees are 4 BPS; 50% = 2 BPS)
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With the exception of the Arbitrum Frax Pool, which will have no admin fees. SIP-1 (ref) specifically requested 0 admin fees
Rationale
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50% admin free seems fair since LPs are getting SDL or partner incentives from staking. Also fee volume on is minimal compared to reward volume based on current trading volume.
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For 16.7% admin fee, PhiMarHal had pointed out that Uniswap “standard” is 1/6ish, so that’s a solid example to follow.
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The Arbitrum Frax Pool exception to admin fees is because we want to keep consistent with what was proposed/passed in SIP-1
- 50% admin fee
- 33.3% admin fee
- 16.7% admin fee
- Against (no change; keep admin fee at 0)
0 voters