Update to Pear Protocol Fee Structure

🏷 Summary

This proposal seeks DAO consensus on updating the Pear Protocol trading fee structure ahead of the Hyperliquid Engine launch. We aim to shift from the current 0.13% default rate to a sustainable long-term fee model. The proposed change will also be applied to ALL other trading engines. Our recommended structure is 0.06% to open and 0.06% to close, balancing trader competitiveness with strong returns for PEAR stakers (stPEAR) who receive 80% of protocol revenue.

📜 Context

Default Fee: 0.13% open / 0.13% close → Helped monetise early attention on the protocol but was largely subsidised via LTIPP grants from Arbitrum and led to unhappy and unprofitable users → Initially great for stakers, but limited returning daily active users and discouraged any whale traders

Promotional Fee: 0.02% open / 0.02% close → Led to $3M–$5M daily volume growth → Great for traders, but staker yield dropped sharply

The DAO now faces a strategic decision: Should we optimize for raw trader volume, long-term revenue, or a sweet spot in between?

📊 Benchmarking Against Centralized Venues For context, major venues using market orders charge:

Binance: ~0.04%–0.08% taker fees Hyperliquid: ~0.03%–0.05% taker fees

📌 Takeaway: A 0.06% fee keeps us highly competitive, especially considering our DeFi-native benefits and composability. Onward execution costs for users will be minimised through internal means.

🎯 Rationale for 0.06% The recommended 0.06% open/close fee is:

✅ Low enough to retain active traders and momentum from recent growth 💰 High enough to meaningfully reward PEAR stakers and build a sustainable treasury ⚙️ Optimized for upcoming Hyperliquid Engine, where enhanced execution and automation will justify slightly higher fees

We've received feedback from both traders and stakers—0.06% is the Goldilocks zone.

🔢 Voting Options

Select one of the following fee structures (applies to both open & close): ⚖️ 0.04% Open / 0.04% Close • Lower fees for traders • Risks underpaying stakers, may not scale with usage

✅ 0.06% Open / 0.06% Close (Recommended) • Competitive fee, strong revenue flow to DAO • Aligns trader and staker incentives • Best positioned for HL Engine era

🚫 0.13% Open / 0.13% Close (Original Default) • High staker yield • Proven deterrent to volume growth

🗓️ Timeline Voting Opens: 12/05/2025 Voting Closes: 26/05/2025

Fee Change (if passed): Upon Hyperliquid Launch (scheduled for after Voting closes)

🔗 Resources

📊 Protocol Analytics: https://dune.com/pear_protocol/pear-protocol 💬 Community Discussion: discord.gg/pearprotocol -> Governance 🛠️ Hyperliquid Engine Preview: Please join the discord and open a #ticket for closed beta access