Currently there is a maximum 0.2% fee charged for Mushrooms Vaults upon withdrawal. Please note the fee is only available when the balance in the vault is not enough to afford the withdrawl thus asset transfer from underlying strategies is triggered.
This governance proposal aims to ask Mushrooms community to vote if we should remove this withdrawal fee.
FOR Withdrawal fee is actually not a very good design in essence due to the fact that it is not an organic protocol revenue. It makes user feel worse when they want to leave the system for some reason. Removing this withdrawal fee completely will help Mushrooms to attract more TVL and users to try this protocol without worrying about any preemptive-fee incurred. It is beneficial to Mushrooms long-term adoption in this permissionless DeFi trending. By steady TVL growth, performance revenue from Mushrooms would win this protocol healthy and strong momentum.
AGAINST Since the withdrawal fee is used to buyback $MM from market and distributed to Super Mario ($MM) stakers in the farming pool, this proposal undoutedly will reduce the potential awards in Super Mario (but is negligible compared to the part from perfromance split). Another possible argument to keep withdrawal fee would be that it somehow discourage user to withdraw but stay in the vaults, although in an unfriendly way.