Making Protocol Fees Operational: Fee options for V3

Operational.

Poll 1: Fee options for V3 Poll 2: Initial deployment chain Poll 3: Asset to be held in the treasury

We invite all voters to express their opinions by voting on these three polls. Once the polls are closed, we'll use the polling data to propose a formal Temperate Check.

How do protocol fees work? V3 sets fees on a pool-by-pool basis, with a fee of 0 as the default. The fee may be set to 0, 4, 5, 6, 7, 8, 9, or 10. This is interpreted as one over the specified number. For example, a 100bps fee tier pool with a parameter of 5 would be a 20% protocol share of the fee, and thus would be 20bps to the protocol and 80bps to LPs. Another example is a 30bps fee tier pool with a parameter of 10 would be a 10% protocol fee and thus would be 3bps to the protocol and 27bps to LPs.

Note that inserting a protocol fee does not increase the fees paid by users.