Decreasing perpetual fees

We have been over cautious from start on the fees taken on perpetuals, to increase protocol surplus and to test demand for long position on USD/EUR. Considering the low hedge ratio on the agEUR, I think it is time to rework the fees taken on perpetual opening and closing.
For recall, the fees are defined as piecewise linear function. The x… represents the thresholds (hedge ratio) and the y… represents the values (fees).

  • I propose to change the USDC fees for:
    Open (previously it was a constant and equal to 0.3%):
    -xHAFeesDeposit: [0%; 80%; 100%]
    -yHAFeesDeposit: [0.15%; 0.2%, 0.25%]
    Close (previously it was a constant and equal to 0.5%):
    -xHAFeesWithdraw: [0%; 60% ; 100%]
    -yHAFeesWithdraw: [0.3%; 0.2%, 0.15%]

  • I propose to change the DAI fees for:
    Open (previously it was a constant and equal to 0.3%):
    -xHAFeesDeposit: [0%; 80%; 100%]
    -yHAFeesDeposit: [0.2%; 0.25%, 0.3%]
    Close (previously it was a constant and equal to 0.5%):
    -xHAFeesWithdraw: [0%; 60% ; 100%]
    -yHAFeesWithdraw: [0.3%; 0.22%, 0.2%]

2 Likes

This is a good proposal, fees are currently too high and because of deviation thresholds on Chainlink, we’ll still be front-running resistant with these fees