Summary
- Set
admin_fee = 5%on the newly deployed TriDBR (DOLA/DBR/INV) and INV/WETH pools - These pools already use higher trading fees (
mid_fee/out_fee) to reflect volatility and to compensate LPs. - We will not seek a Gauge Controller listing nor request CRV emissions for these pools while this parameter is in place.
Background
- INV is Inverse Finance’s governance token. DBR is a perpetual call option token used to borrow DOLA on FiRM (Inverse’s fixed-rate lender).
- INV and DBR are exotic assets. Sustainable liquidity requires meaningful trading fees to LPs. With Curve’s default
admin_fee = 50%, half of fees are diverted to veCRV, leaving LPs with too little to stay without external incentives. - Historically, we bridged that gap with CRV incentives. When those incentives paused recently, third-party LPs exited, leaving only protocol-owned liquidity: clear evidence of incentive dependency.
Proposed Parameters
- mid_fee (low-volatility minimum): 0.50%
- out_fee (high-volatility maximum): 2.00%
- admin_fee (share of fees to veCRV): 5%
This keeps 95% of trading fees with LPs while still sending a non-zero stream to veCRV
Motivation and Rationale
- Make fees do the work: On Uniswap-style markets, LPs are retained by fees, not emissions. By combining higher trading fees with a low admin take, we aim to replicate that behavior natively on Curve for these exotic pairs.
- Sustainable for veCRV: Although
admin_feedrops from 50% to 5%, the total fee take per trade is materially higher (mid_fee/out_feesignificantly increased), so veCRV admin revenue can remain in the same ballpark at typical trade sizes/volumes, while avoiding CRV inflation entirely. - No gauge, no emissions: We are not asking for a gauge. The pools should stand on their own economics. This aligns with veCRV holders who prefer real fee revenue over new token emissions.
- Alignment: Inverse is a meaningful veCRV holder (via liquid lockers). We’re proposing a structure that pays LPs enough to stick around, and keeps a steady fee stream to veCRV, without tapping inflation.
This configuration is intentionally experimental and, to our knowledge, uncommon on Curve for long-tail assets. We may bring forward future adjustments to mid_fee, out_fee, or admin_fee via standard governance to optimize LP fee APY, depth, and admin-fee revenue.
Specification
NEW_ADMIN_FEE = 500000000
ACTIONS = [
# Set INV/WETH admin_fee to 5%
(“0xDcD90D866Ff9636e5a04768825d05d27b3Fb19eC”, “set_admin_fee”, NEW_ADMIN_FEE),
# Set TriDBR admin_fee to 5%
(“0x66da369fC5dBBa0774Da70546Bd20F2B242Cd34d”, “set_admin_fee”, NEW_ADMIN_FEE)
]