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PlanetPlanetby0xFd525F21C17f2469B730a118E0568B4b459d61B90xFd52…61B9

Increase the Auto-Compound Fee & AQUA Burn Amount

Voting ended over 4 years agoSucceeded

Note this proposal was re-created as the previous proposal did not include the AQUA auto-compound amount

On the Red and Blue planet, the current auto-compound fee is 2.5% and on Uranus it is 5%. The AQUA rewards given on top of the aggregation is always significantly higher than the cake, auto, and belt interest.

Take the BTC vault, for example, the rewards from auto/belt are currently 6.14% and from AQUA it is currently 8.09%. In this vault, we take 2.5% interest of the 6.14% = 0.1535% and then give users 8.09% in AQUA interest.

As such this current model gives more incentive for users to deposit in a vault and sell AQUA over holding AQUA as the buying pressure on AQUA from the fees is relatively low. If we increase the fee to 5% we will be burning twice as much AQUA and it will increase the buying pressure on AQUA.

Off-Chain Vote

Increase to 5%
9.57K 98.9%
Stay at 2.5%
110.02 1.1%
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Timeline

Aug 03, 2021Proposal created
Aug 03, 2021Proposal vote started
Aug 10, 2021Proposal vote ended
Oct 26, 2023Proposal updated