Name: Increase the default fees for new host chains
Status: Final - Accepted
Scope: Increase the minting and burning fee to 0.15% for future host chains that are integrated
This RIP proposes increasing the initial minting and burning fee for all assets on newly integrated host chains to 0.15%, from 0.10% previously.
The rationale for this is that we’ve observed that the primary reason people bridge assets like BTC to new chains is because of liquidity mining programs. And those type of users would not be particularly sensitive to the fee being either 0.10% or 0.15%, since they are likely getting 30-100% or more APYs.
Many new host chains are rapidly going to be coming online over the short term. And we’ve seen that in this multichain environment, projects are competing for liquidity and users, often with high liquidity mining incentives. This makes it sound for us to adjust our fees, without needing to worry much about if it negatively impacts the formation of liquidity on new host chains.
Long-term this can be adjusted up or down based on demand and use-cases. Reasons for lowering it could be because high-frequency trading and arbing is occuring on some platform where we could actually get more returns by lowering the fees, in certain situations.
- Vote on the proposal
- If accepted, use the new fee value when deploying the gateway contracts on the new host chains