Withdrawal Fee Reduction [Detailed]

Read this if you want a quick sum up:

1. 0 harvest fees, slightly lower apy on regular vaults
2. Decrease .5% withdrawal fee + decrease vault apy very little = much higher and more sustainable acs apy (all in all higher APY on the vault + more acs distributed to get that 2.5x boost!)
3. Increase boost factor over time when emissions happen. ex: emissions cut, boost changes to a 3x acs boost
4. This will benefit everyone, even if you aren't holding any ACS/ACSI (though you definitely should!)

Math summed up: Current distribution: 620 ACS/day distributed average With 15% performance fee: 1687.2 ACS/day distributed average With 10% performance fee: 1094.2 ACS/day distributed average

• These numbers are calculated from week old data, and does not factor in Abduls proposals. The numbers may vary but the general range should be around the same

Read this if you want a detailed explanation (I know its long):

I was unaware as I have a feeling multiple people may have been that Abdul posted this in the Dao telegram group (https://t.me/acryptosdao):

"Here are a few things that we're looking to get some community input on:

1. Ending farm harvest fees and increasing ACS vault's allocation from daily ACS emissions. ACS vault's APY has fallen because of the big cuts in harvest fees (from 7 ACS to 0.03 ACS, 99.57% drop). The issue with the harvest fee is that it always favors whales over smaller farmers, and one way of solving this is taking ACS directly from daily emissions instead of individual harvests. This would mean that the farm APYs of vaults would experience a slight drop, ACS vault APY would go up, and farm harvest fees would be 0.

2. Decreasing 0.5% withdrawal fees to attract more TVL (people who like to move in and out of their crypto positions, not necessarily degen farmers), and increasing performance fees to compensate for it. The way I see it, people are more conscious about the withdrawal fees than the performance fee. By making this switch, not only would we attract more TVL over time, but the daily buybacks would also go up because of higher performance fees. The only downside is the lack of big buybacks we see during market dumps when a large portion of TVL is withdrawn from ACryptoS (currently we're getting 0.5% for buybacks, that would decrease)

3. Increasing boost factor limits overtime to increase the disparity of farming rewards between those that have a stake in the protocol and those that do not. Increasing boost factor limits on every ACS daily emissions cut would allow us to compensate vault depositors for a decrease in farm APY. As an example, when the next ACS daily emissions cut of 18.65% takes place in mid May, the farm APYs of all vaults will also fall by 18.65% ceteris paribus. By increasing the ability to get of vault depositors to get a bigger boost like 3.0x or 3.5x, some of this drop in APY may be covered. It will also encourage more people stake their farming rewards, and double-down on reducing ACS inflation sell pressure every 90 days. Please note that the above are only at idea stage right now that I'm discussing with the core DAO and if there is positive community feedback then they MIGHT be voted on through a core proposal. All discussion is welcome so we can objectively see all the pros and cons"

Here is my math to back up the fact that performance fees + reduction of our current withdrawal fees are a better structure, warning, it is slightly outdated as I made it a week ago and at this point, we would be actually getting a better rate due to the increased tvl since then:

Based on our current TVL of 326,584,374, if we remove the core vaults we are at about 278,193,374, which makes our current buyback of ACS about 539 ACS/day (((TVL - core) * .05) / 365) / Current price (70.63)

Fees are incredibly difficult to calculate due to the inconsistency of withdrawals, so instead I'll take the average total from buybacks: Total buyback = 101136 ACS for 163 days Average = 620 ACS/day

Average ACS from .5% withdrawal = 81 ACS (Average - performance ACS)

So from this, we can see that TVL has a direct relation to where the vast majority of the ACS APY comes from, whereas the .5% withdrawal really isn't making a huge difference considering the number of people that won't give AcryptoS a shot because of it (Getting this information from people that join/leave telegram and the posts/replies on twitter)

Boosting performance fee to roughly 15% would give us: 1617 ACS buyback per day (current daily performance fee 539 * 3) current average And we can reduce the fees to something people are much more happy with, such as .1% knocking the 81 ACS earned from that per day, down to 16.2 (81 * .2)(since .1% is 20% of .5%). Considering it was a small number to begin with, this drop isn't a make or break point from switching the fee structure

With this change, there will be a minor drop on the vault APR, but a much more notable gain on the ACS APR which also will be directly boosted from a high TVL as well, which will happen when less people are scared away from the .5% fee

Furthermore, the increased ACS buyback will also help sustain/boost the price of ACS due to a larger amount being purchased regularly

This would also cause the APRs to be more consistent, we may not have the 1-3 days a month where a whale withdraws, but we'll have consistently better ACS APR daily which I personally would prefer to begin with to help calculate an actual APY

This will also still be more effective if you want to do a slow transition and switch to a 10% performance fee, .1% withdrawal (1078/day performance + 16.2 withdrawal) > 620

If you made it this far, thank you and I really hope you see the value in switching the fee structure! Please share this! As per Abdul, unless the community is showing positive feedback for this, hope may be lost so please share this and vote on it!