Update Withdrawal Fee

Proposal Submitted: Snapshot


The purpose of this proposal is to re-instate a withdrawal fee. The options will be for various options from which the community may decided which duration for early withdrawal is most suitable.


The withdrawal fee will work by starting at the selected % with 1% less each day. For example, a fee of 14% requires 14 days of fees, such that an early withdrawal on Day 1 equates to a 14% fee, minus 1% daily down to 0% after 14 days have elapsed. The withdrawal fee will go towards buyback and burns in addition to protocol owned liquidity.

Warm Regards,
Buns Enchantress

I think having a withdrawal fee is good, but the decaying function I’m not entirely sure about. In any case I wouldn’t let it go to zero, but to a market conformal 0.1%.

A side issue of the high initial fee is that it complicates partner vaults. Grim had to make custom contracts to make it work in a rather convoluted way that was not without issues. Thinking of pool gauges down the road, similar complications might pop up. But on the other hand, it can always be changed again.

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