Overview

Redeem fee are ideally set at 2x to 3x of weekly ROI, to deter double dip exploits.

Current Redeem Fee is 4%.

It was set based on 70% annualized ROI.

This proposal seeks to adjust it to 2%.

Based on 35% annualized ROI.

Why do we need this Fee?

To prevent "double-dipping" ― that is, to deter people from earning voting rewards on Wednesday night, then farming eliteRingsScUSD from thursday to new wednesday, and then going back to Voting on Trevee (Rings) by redeeming eliteRingsScUSD back to veUSD, vamping the protocol revenue, without contributing to the voting power of the protocol on wednesday night.

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Background

Docs - https://ftm.guru/docs/eliteRingsScUSD/ Dapp - https://eliteness.network/rings

eliteRingsScUSD (read: elite-rings-scUSD) is a Liquid Wrapper for Rings.Money’s scUSD veNFT (veUSD).

It is based on our eTHENA model, which helps trade 1-year locked veUSD easily in both directions.

We currently own roughly 5% of all Revenue generated by all the $40M of USDC that backs scUSD on Ethereum!

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For further discussion, please join the eliteRingsScUSD channel in the Eliteness.Network server! https://discord.com/invite/QpyfMarNrV