With the utilisation rate of pool at the moment when borrowing, it will mean that people who take loans early after pool creation pay less fees. It would make sense to calculate the fee when you reimburse your loan. Or we could have it when borrowing but you have to pay it when taking the loan, but i don’t like it as much as paying after.
are the fees to be paid at the time the loan is taken, or when the loan is repaid? At the time it is taken makes more sense since the user could pay back the loan in any time from, correct?
how do we take this and submit an official poll for voting?
Since Lenfi will offer a fixed fee based on the time of borrowing, protocol fee % should also be calculated at the time of borrowing to offer full predictability for the borrower. This is very important for borrowers, more important than whether their total interest (incl. protocol fee) will be 10.1, 10.2 or 10.3%, as long as they know that it will not suddenly jump to 22% for example.
I like the option of tiered fees, as the protocol needs to generate fees for its functioning.
Going up in the UR will bump the interest quite a lot, so whether the interest (incl protocol fee) bumps up for example from 10.1% to 18.18% or 18.36% should not make big difference for the borrower, in my opinion at least.
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liking the idea of dynamic fees! imo interest rate should be due when users are taking the loan for obvious reasons mentioned in previous comments. thanks @neophyte for kicking off the discussion 
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I am for a tiered protocol fee model. Something such as:
Tier 1- 0-15% UR = 0.2% fee
Tier 2- 16-30% UR = 0.5% fee
Tier 3 - 31- 50% UR = 0.75% fee
Also, I think perhaps we should have different tiers for stablecoins seeing as they will most likely be our biggest source of revenue.
Tier 1- 0-15% UR = 0.5% fee
Tier 2- 16-30% UR = 0.75% fee
Tier 3 - 31- 50% UR = 1% fee
Interest is normally collected at the end of a loan term. I’m seeing suggestions for it to be collected at loan origination but that wouldn’t make sense. It isn’t certain when a user will pay back a loan unless the duration of the loan is predetermined. Interest accrues until the borrower pays back the funds which is what incentivizes the lender.
Too low, for a 100 Ada interest, 0.5 Ada doesn’t even cover the transaction. The minimum should be set at 1prc-1.5 then 2 prc
I don’t see why we don’t just make it flat and make it 2%. The fee rate is insignificant compared to the interest rate so why mess with making it complicated and offering a lower rate? Nobody will balk at the 2% - it changes a 10% interest rate to 10.2%.
I was basing those rates on what Aave currently does. Perhaps it could be better to start higher but I think if pools aren’t utilized why impose higher fees? You want to incentivize borrowing by having low fees.
Having a flat rate will make us miss out on potential revenue as Neo stated. A higher UR should pay a higher fee. A tiered fee could also incentivize people to open up new pools with better terms for the borrower.
But what you are proposing is a very small fee, as the fee is applied only on the interest and not the loan total. if you borrow 3000 ADA for exemple where you have 100 ADA interest, the fee to the DAO, if set to 2prc is only 2 ADA (on 3000 ADA loan in this exemple, so not high at all)
I get what you’re saying but currently, we’re at 18 million ADA TVL the fees will accumulate over time.
Agree with Daro and in addition, the fee is so small that it doesn’t have any substantial effect on other pools opening. The high interest rate that comes with high UR will overwhelm any effect from the fee.
We don’t lose out on any fees from the flat fee if you make it the highest from the proposed tiers, or 2%. The treasury will collect more.
Plus, I don’t think we should draw attention to the fees by having a tiered schedule. As a flat fee, all the borrower is considering is the interest rate. The flat fee becomes irrelavent since it doesn’t change.
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Actually, why would anyone want to open a new pool to lower the UR? Any potential lender will deposit in the pool with the high UR and high interest rate.
To gain some market share and earn interest
Interesting to read. I imagine having static fees would encourage increased activity early on but then as protocol is popular the fees will be higher. Option 4 would be a preferable option with fees not being too high.
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it might be sensible to try a best guess for a few months, then revote and adjust the parameters as needed
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how do we take this and submit an official poll for voting?
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isnt this trying to go around the interest rate and safety mod situation, mantas idea was better along with the tiered fee…