[Discussion] Switch on 0.1-0.5% fees to protect LPs from no contest dumping

No contest outcome with initial 2% pool weight is the source of up to 5-7% losses for LPs in markets where real no contest probability is very low
To protect LPs and decrease max IL I propose to switch on trading fees

Couldn’t we set starting price of no contest at 0.01 for H2H NFL games or 0.005 for NFL lines/totals

In the grand scheme of augur planning, I would reject turn on fees for now. Matic reward will end soon. Unless augur turbo wants to be multiple homed onto many sidechains for grants and user rewards, the only way for LPs to stay is trading fees in long term sustainability. Turn it on after there is no extra token reward, but definitely not now with matic reward because APR from matic reward will be a lot higher than trading fees. The APR will drop eventually, but we don’t front load everything and left very little incentive for LP after reward ends. With matic reward, turbo gets going. It is sad to see V2 morphing into ghost town. Don’t make the same mistake again. Maybe when the initial matic reward ends, polygon will grant a second round, not as lucrative as the first one, but LP still gets some. There are 2 fees in turbo: trading fees and settlement fees.

Trading fee is 0.0001% and settlement fee is 0.05% now. It’s fine.
After matic reward ends, trading fee should be 0.3% like uniswap and settlement fee should be 0.2%.
100% of the trading fee goes to LP. 50% of the settlement fee goes to LP and the rest goes to treasury. The treasury should use the fund to buy back and burn equal amount of REPv1 and REP v2 on open market.

It won’t work. You can mint shares and dump No Contest and pay 0.1%-0.5% of 0.001 (or whatever it is at).

The solution is to eliminate it and to split the payout 50/50 between the two contestants.

In the initial stage, it is a good way to attract LPs through liquidity mining. When the market transaction reaches a certain scale, liquidity mining can be gradually cancelled. If there is no matic reward, then augur wants to survive and can only issue additional repv2 as a liquidity reward.

I talk about oi settlement fee