Context

Symbiosis aims to ensure each token swap finds the best path. This means achieving the highest amount of tokens for the lowest possible fees, both on the blockchain and across chains. At the heart of these cross-chain operations are the Symbiosis Octopools.

Thanks to the capital efficiency of the Symbiosis Octopools, operations across multiple blockchains can happen smoothly and efficiently.

For every swap made in these Octopools, a small fee is charged. These fees are then added back into the pool's total liquidity. So, when a liquidity provider decides to take their assets out of the pool, they get back their share of the assets along with a portion of the fees collected since they first contributed liquidity. This process is part of what's known as the AMM (Automated Market Maker) pool protocol. Currently, the fee for liquidity providers in the Octopools is set at 0.01% of the swap amount.

Proposal

Adjust the liquidity provider fee in the Octopools from the existing rate of 0.01% to 0.025%.

Key points

• This adjustment is expected to have a minimal impact on the users of the Symbiosis protocol, maintaining the user experience without significant changes.
• Conversely, the profitability for liquidity providers is anticipated to improve, enhancing their incentive to contribute to the pool's liquidity.
• This proposal aims to strike a balance between maintaining an attractive and efficient swapping environment for users and ensuring the sustainability and attractiveness of providing liquidity within the Symbiosis ecosystem.