Temp check: Update swap fee

dxDAO
#1

Hey, This is a small temperature and a consensus check to discuss about what does others feel about increasing the swap fee for a few pairs.

Network Pair Current Proposed
Gnosis Chain SWPR / XDAI 0.25% 1%
Gnosis Chain DXD / WETH 0.25% 1%
Arbitrum SWPR / WETH 0.25% 1%

Reasons:

SWPR and DXD are illiquid across chains. This will hopefully incentivise new LPs to add more DXD and SWPR to LP.
Reduce the Impermanent Loss for LPs.

SWPR / XDAI fee proposed to 1% in Gnosis chain
  • Update to 1%
  • 0.25% is good

0 voters

SWPR / WETH fee proposed to 1% in Arbitrum
  • Update to 1%
  • 0.25% is good

0 voters

DXD / WETH fee proposed to 1% in Gnosis chain
  • Update to 1%
  • 0.25% is good

0 voters

A new snapshot vote will be created in a week once the feedback is collected. Kindly let us know your feedback and comments.

3 Likes
Governance Discussion, Mar 2
Etherlabs AB - contributor proposal
Governance discussion, Feb 23
Governance Discussion, Mar 30
#2

I wish there were more options status quo or 1%.

I’m in favor of a swap fee increase on all of the pools you mentioned, but quadrupling the swap fee from 0.25% to 1% seems like a big jump.

I’d favor a more incremental choice and then adjust fees based on volume. Or maybe try out different fee amounts on different chains.

2 Likes
Caney Fork Worker Proposal Feb/Mar 2022
#3

Hey Chris, I had initial thoughts to propose or suggest for asking a 0.5% fee and a 1% fee, but wanted to keep it aligned with what Uniswap offers for now. Have heard a few aggregators struggling to integrate Swapr because of the custom fee setup Swapr has and didnt want to stretch it too far. :slight_smile:

#4

Temp check to find the right Swap fee for the pairs related to DXD and SWPR.

We had a discussion in Governance call last week and agreed that it is good to find the right swap fee.

What should the swap fee for SWPR / XDAI in Gnosis Chain be?
  • 0.25%
  • 0.6%
  • 0.75
  • 1%

0 voters

What should the swap fee for SWPR / WETH in Arbitrum be?
  • 0.25%
  • 0.6%
  • 0.75
  • 1%

0 voters

What should the swap fee for DXD / WETH in Gnosis Chain be?
  • 0.25%
  • 0.6%
  • 0.75
  • 1%

0 voters

I will also include a check for consensus for Arbitrum DXD/WETH pair here to do a temperature check.

What should the swap fee for DXD / WETH in Arbitrum be?
  • 0.25%
  • 0.6%
  • 0.75
  • 1%

0 voters

Let me know if you would like to add / edit the values of swap fee :slight_smile:

1 Like
#5

Hey, not sure if I’m late to the party…
Just wanted to point out the fee is not directly related to impermanent loss (which happens due to price moving away for the LP deposit price.)

Increasing the fee makes the pool more attractive to LP but less attractive to traders. Meaning some trading volume could be shifting to other pools. In this case LPs will get bigger cut but from a smaller pie.
So overall I don’t think it is clear this move will achieve the intended outcome of generating more LP revenue and consequently increasing profitability or providing liquidity

Governance Discussion, Mar 16 2022