✔️ MCCP 16: Fee restructuring for swaps and redemptions

Simple Summary

It is proposed to consolidate and unify the fee structure for the current set of products at mStable. Currently, fees vary somewhat and this proposal’s purpose is to align all mAsset fees to 2 bsp and fPools to 6 bsp.

Abstract

The current fee structure is very fragmented. For example, mUSD swap fee is set on Ethereum Mainnet to 3 bsp, while mBTC is set to 2 bsp, while the redemption fee is set to 6 bsp. Feeder Pools also vary between 4 and 6 bsp.

This structure is not very transparent, not easy to remember or to document. Therefore it is proposed to consolidate all the swap and redemption fees for all mAssets and fPools into their own tiers.

The proposed structure is the following:

  • mAsset swaps and redeems: 2 bsp
  • fPool swaps and redeems: 6 bsp

This should apply to Ethereum Mainnet and Polygon.

Motivation

This proposal seeks to unify and simplify the fee structure. This would make the products easier to understand. This would also set a precedent to what the fee structure is on mStable that could be used to apply to future products as well.

Specification

This proposal will perform the following transaction for assets that deviate from the fee structure described in this proposal. This includes mUSD, mBTC, and fPools on Ethereum Mainnet and mUSD and fPools on Polygon.

mAssets:

  • setFees(swapFee, redemptionFee)
    • swapFee = 2e14
    • redemptionFee = 2e14

fPools:

  • setFees(swapFee, redemptionFee, govFee)
    • swapFee = 6e14
    • redemptionFee = 6e14
    • govFee = 1e17 (unchanged 10%)

The proposed structure here is mostly the outcome of the very fruitful discussion in this thread: ✅ [RFC] Consolidate fees for swaps and redemptions

The following tx are to be made based on this proposal:

Mainnet

  • mUSD (0xe2f2a5c287993345a840db3b0845fbc70f5935a5)
  • mBTC (0x945facb997494cc2570096c74b5f66a3507330a1)
  • alUSD Feeder Pool (0x4eaa01974B6594C0Ee62fFd7FEE56CF11E6af936)
  • RAI Feeder Pool (0x36f944b7312eac89381bd78326df9c84691d8a5b)
  • FEI Feeder Pool (0x2F1423D27f9B20058d9D1843E342726fDF985Eb4)
  • tBTCv2 Feeder Pool (0xc3280306b6218031e61752d060b091278d45c329)

Already conform to this proposal:

  • BUSD Feeder Pool
  • GUSD Feeder Pool
  • HBTC Feeder Pool

Polygon

  • mUSD (0xe840b73e5287865eec17d250bfb1536704b43b21)
  • frax Feeder Pool (0xb30a907084ac8a0d25dddab4e364827406fd09f0)
1 Like

Thanks @dimsome looks good

The Protocol DAO multi-sig transactions are up for signing.

2 Likes

The new fees have been set on both Mainnet and Polygon

2 Likes