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.
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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…
Agreed, should be set at repayment.
A good proposal indeed. Let us get into it already.