Turn on Saddle pool admin fees (vote in poll below for what % admin fee)
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.
Admin fee would go to protocol treasury
Putting out a poll to figure out what is the appropriate fee: 50%, 33.3%, or 16.7% (vote below)
E.g. 50% admin fee = 2 BPS (i.e. trading fees are 4 BPS; 50% = 2 BPS)
With the exception of the Arbitrum Frax Pool, which will have no admin fees. SIP-1 (ref) specifically requested 0 admin fees
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.
For 16.7% admin fee, PhiMarHal had pointed out that Uniswap “standard” is 1/6ish, so that’s a solid example to follow.
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)