Update Vault Fees for MEEB, COOL, WOW, SQGL, DOODLE, and TOADZ

Authors

• Javery

Glossary

• DAO
• Fee Structure

Summary

This proposal is intended to switch up the current fee structure percentage 10/4/6/4/6 for the following vaults to the new fees listed below.

(Fees are defined Sell/Random Buy/Target Buy/ Random Swap/Target Swap)

MEEB 2/1/2/3/4 COOL 4/3/4/7/8 WOW 3/2/3/5/6 SQGL 4/3/4/7/8 DOODLE 3/2/3/5/6 TOADZ 3/2/3/5/6

The proposal was put forward by the wallet that holds the majority LP for each of the vaults.

The result that is being aimed for is creating higher organic APRs for both liquidity and inventory providers based on the success of the Crypto Morie vault fee configuration.

Rationale

Since rolling out the second version of NFTX Protocol, we’ve recommended setting fees for new vaults at a 10/4/6/4/6 rate with the idea to optimize fees generated for liquidity & inventory providers.

The optimal fee settings for vaults is still something that requires adjusting overtime, with these changes being another step along that optimisation path.

With a lower sell fee the we expect to see NFTX inventory be closer to the floor price on the aggregator markets like Gem and Genie which should generate additional turnover on the vault, therefore creating more fees for liquidity/inventory stakers.

Opportunity

Updating the fee structure can increase the activity on the vault providing an overall net increase in APR for inventory and liquidity stakers on the vaults.

Risk

• The lower mint fee may not increase the buy activity and a net loss of fees will be generated after the update.
• The fees are fixed for a 30 days after changes.
• As the use of aggregators is relatively new, we generally lack data to back up these recommendations. Changing fees can mostly be seen as an experiment until further vault usage data caused by integrations is available to us.

Specifications

If this proposal passes, we will update the vaults to match the fees outlined above.

Funding request

No. This request requires no funding.

Communication

• Discord: NFTX

Quorum (for Snapshot)

• Minimum Quorum: More than 10% of circulating, non-treasury NFTX must participate for a proposal to Pass.
• Passing Threshold: More than 50% of voting tokens must vote FOR for the XIP to Pass. For changes to the NFTX contract, more than 70% of voting tokens must vote FOR for the NIP to pass.