Protocol Flat Fee on all Lenfi V2 Pools

Short Description
I would like to propose a flat PROTOCOL fee across all Lenfi V2 pools on launch so the DAO and eventually token holders can share in the revenue generated by the platforms usage and success.
Motivation
In my opinion, these fees should not be high but should be enough to incentivize Lenfi token holders and users. This protocol fee would be the % of the loan interest paid to the DAO treasury for each loan taken.
Ex: Lets say the fee is set to 2%, and a loan is paid back with 1000 ADA in interest, the DAO would receive 20 ADA (2%) of that interest.
You can imagine with high usage over time the DAO treasury can grow into a massive fund that will benefit all Lenfi token holders and users.
Please vote on the poll and provide any feedback you have!! Huge shoutout to the Lenfi team and what they are building, excited for what V2 will bring!!!

  • 1% Flat Fee
  • 1.5% Flat Fee
  • 2% Flat Fee
  • 2.5% Flat Fee
0 voters
4 Likes

We should start lower like .5% & slowly push it up over time if needed.

4 Likes

More than 1prc seems a little high, we need to unboard people and maybe have a second vote when volume really picks up

4 Likes

According to the Lenfi documentation Protocol Fees - Lenfi , the Protocol fee is a fee collected by the DAO as % on the interest paid by borrowers of certain pools. While the DAO can choose which pools to implement protocol fees, adding a flat protocol fee universal to all emerging pools will reduce pool discrimination and maximize the collected fees.

1 Like

nice prposal im surprised it didnt go up to 5% but kudos for posting a great proposal

1 Like

From my point of view, it would be good to start with a lower rate, if necessary in the future we would increase it. As we already have a high rate on the network itself, it would be good to leave it as low as possible, the minimum I believe would be good at 0.50%. But it’s a great start to the proposal, congratulations.

2 Likes

Since it’s a percentage of the interest and not the loan, I don’t think there is a significant difference between 1 and 2 percent to the pool, but a big difference to the treasury. On a 6 percent interest repayment, the proceeds to the pool would be either 5.88% or 5.94% - not really enough to discourage lending.

1 Like

Start lower. Get those loans in. Create FOMO. Make the fee increase to tie up with a quarterly review.

Starting lower could be good

1 Like

I agree. The lower the fee the better. We want to attract many users to the platform.

Now that I’ve thought about it, start with low fee first to attract users.