TIP-105: Reduce fees for Vault trades

id	Title	Status	Author	Description	Discussions to	Created
TIP-105	Reduce SafeBox fee for Vaults	Draft	Danijel	Reduce or remove SafeBox fee when Vaults are buying from the AMMs	https://discord.gg/rPpPcMXSeU	2022-11-21

Abstract

This TIP proposes to reduce SafeBox fee to 0.5% when Vaults are buying from Thales or Overtime AMMs.

Motivation

With the Overtime vaults released recently and Thales vaults being released very soon, its clear to me that for those vaults to be efficient and profitable, thus attractive to depositors, we should reduce their fees.

On Overtime specifically its not that often that there are enough discounted positions that meet the conditions the specific vaults have, or for those that are, with the SafeBox fees applied, the vaults would still not be profitable long term based on math and theory of big numbers and correct odds alone.

As Vaults are purely beneficial to the protocol as they balance the AMM risks and increase our TVL, I think it's in our interest to reduce the fees for when Vaults buy from corresponding AMMs to a bare minimum of 0.5%.

If the vaults do end up being profitable with this change in effect, we could introduce a dedicated vault fee, but at the moment I feel its more important to make sure the vaults are attractive and efficient.

Specification

• Add a configurable mapping to our AMM contract that allows to set a dedicated SafeBox fee for a specific address
• Reduce SafeBox fees for Vaults when buying from AMMs from 3% to 0.5%

Implementation

n/a

Copyright

Copyright and related rights waived via CC0.