Hey, This is a short temp check to see what the community feels about reducing the swap fee for SWPR-XDAI pair.
In the recent days, there is a lot of increase in volume in SWPR/WETH pair so much that it is the leading pair with the highest volume. To piggyback on the increase in volume in Arbitrum and encourage traders to trade / arb on Gnosis chain, I would propose to reduce the swap fee from the current 1% to something less.
For comparison, the 7D volume in Arbitrum is almost 222K and 6.5K in Gnosis chain.
What should the fee for SWPR-XDAI pair be in Gnosis chain?
Nice to see some price and volume action on Swapr.
From an LP’s perspective, the goal to have more fees, which would come from higher volume or with a higher fee. Is this change intended to increase returns for Swapr LPs?
The new flows are coming into Arbitrum natively. The chain is growing and I think @0xVenky mentioned there was some community that is driving some of the activity. If you look at the activity on Gnosis Chain, it’s mostly to get cheap SWPR and sell on Arbitrum. I don’t think lowering the SWPR/XDAI fee would bring traders from Arbitrum to Gnosis Chain.
So as a SWPR/XDAI LP (Caney Fork is ~22% of SWPR/XDAI pool), I’m concerned that there will not be a corresponding increase in volume to adjust for the decrease fee take. With the price movements on Swapr, impermanent loss is a big concern. It would be great to get more volume on Gnosis Chain, but without some organic volume, SWPR/XDAI LP’s might be better off with the 1% fee even if the volume is just arbing with the much more active Arbitrum pool.
Indeed, just looking at returns for LPs on Gnosis and Abritrum over the last 8 days and they are about the same, despite all the organic volume on Arbitrum.
