QIP226: Remove Repayment Fees on Base

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title: Remove Repayment Fees on Base Vaults network: Base author: Benjamin.lens implementor: Guardians implementation-date: immediately after approval created: 2024-02-23

Summary

This proposal aims to remove repayment fees on all Base vaults that currently charge them: cbETH and wstETH.

Abstract

Removing repayment fees from these vaults will allow loan-holders to mint and redeem MAI without any penalties.

Motivation

MAI on Base has been slightly depegged for a few weeks. The protocol attempted to fix this depeg by increasing demand to hold the stablecoins. This has not worked. By removing repayment fees, the goal is to contract MAI's supply on Base.

Rationale

Since short positions were entered when MAI was at peg, loan holders can make a return by repaying when MAI is below peg. Repayment fees are a barrier to this activity as they penalize loan holders that repay.

Specification

Technical Specification

This proposal recommends the parameter changes outlined in the following section.

Configurable Values

Set closingFee to 0 on cbETH and wstETH vaults