QIP187: Improving Protocol Profitability

This proposal seeks to increase performance fees to 20% for the following yield bearing assets on all chains where listed. This increase is not meant to be a recurring increase on performance fees, but rather a calculated increase to cover the cost of MAI liquidity to the protocol.

• stETH
• stMatic
• stETH-ETH LPs
• yvETH

Motivation

• Make minting MAI on these new vaults profitable for the protocol
• Increasing the protocol revenues will benefit eQi holders with higher weekly distributions
• By charging performance fees rather than interest, debt amounts will not increase over time. This makes for much safer less expensive borrowing

Competitive landscape

Given the alternatives for the assets in question, QiDao has room to increase its performance fees while remaining the least expensive and safest option.

stETH (Optimism, Arbitrum)

• No alternative options on these chains
• QiDao offers 5% borrow incentives in LDO, 0.5% repayment fee, and max LTV of 77%.

stMatic

• Aave charges a variable ~2% and fixed 5% APR, and has a max LTV of 50%
• QiDao offers 3% borrow incentives in LDO, 0.5% repayment fee, and max LTV of 74%

stETH-ETH (Yearn, Stake DAO, Beefy)

• No other major protocol offers loans against stETH-ETH LPs
• QiDao offers up to 15% borrow incentives in LDO, 0.5% repayment fee, and max LTV of up to 80%

Quorum Standards

The option with the most votes will be adopted.

Options

• Approve proposal
• Further discussions needed
• Abstain