RFC-000-032: Temporarily Decrease Minting & Burning Fee In Time For H2H

Requests For Comment | RFC
14

I’ve been speaking with a lot of defi folks to get the sentiment regarding fees and even managed to learn some stats from other major competitor… In short, the conclusion I’ve came up with was that small fees can work even from the start. So on the 17th I had written this idea in our discord:

I was thinking more about fees and what do you think about having 0% mint fee (for non $renBTC assets! and for a short while!) and smth like 0.1% fee for H2H burn&mint? This way interested 3rd parties might solve a lot of our (potential) liquidity problems, because they’ll see value and a chance to earn with this offer, and DNs will still pocket nice fees with H2H. And in case we want to add an extra cross-community marketing touch - we can remove all fees for a certain asset, ex. $MIM. Thoughts? At first glance sounds like a decent compromise between what different community groups want. (edited)

Downsides:

  1. TVL might explode and it’s unclear yet what implications this might have
  2. Some of our transfers will be more expensive than what (bridging) competition offers. But there are other competitors, who also charge fees for same assets and have decent volume…
  3. Arguably less marketing potential than just “FREE”
    3.1 Arguably weaker user acquisition (= weaker ability to reach more people)

Upsides:

  1. Easier liquidity bootstrapping, hopefully.
  2. DNs get H2H fees
  3. We maintain minting fees for $renBTC
  4. We still have an opportunity to completely remove fees for certain asset, forming a special-bond with the community that represents that asset. This might offset point “3.” in downsides.
  5. Even with 0.1% we’ll be A LOT cheaper for guys with smaller bankrolls (due to no min. cap) and by default there’s a lot more of smaller guys than :whale: , so we can market from this “robin-hood” angle + have word of mouth effect.

As of now this is my favorite option. But the minting fees for non renBTC assets totally depends on how confident we’re that we can get liquidity on our own or with our friends. And if we think this will be a problem, than 0% for a short while, like couple of weeks max, can make sense. Otherwise, if we’re sure liquidity is not going to be an issue, 0.1% everywhere can work as well.

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