Summary:
This proposal aims to reduce the trading fee of the USR/USDC Curve pool (0x3ee841f47947fefbe510366e4bbb49e145484195) from 0.02% to 0.009%, while maintaining the current amplification parameter (A = 2000) and the off-peg fee multiplier (5). The goal is to improve the pool’s competitiveness, attract greater routing volume, and increase long-term earnings for liquidity providers.
Abstract:
By lowering the fee to 0.009%, this proposal seeks to make the USR/USDC pool a more attractive route for stablecoin trades. Simulations show that under the current amplification level, a lower fee improves expected revenue due to increased trade volume. This is especially important for aggregator platforms like CowSwap, which currently route very little traffic through the pool.
Motivation:
Analysis of the pool’s performance under various fee and amplification settings was conducted. Key results include:
- A mountain chart of revenue across fee and A values shows a strong ridge at low fees.
- A detailed chart of revenue versus fee at A ~ 2000 indicates that 0.009% outperforms 0.02% in expected revenue.
- CowSwap order flow data reveals minimal usage of the pool under current settings.
Together, these findings suggest that reducing the fee will improve routing priority and pool utilization, benefiting LPs through increased fee capture over time.
Specification:
ACTIONS = [
("0x3ee841f47947fefbe510366e4bbb49e145484195", "set_new_fee", 900000, 50000000000)
]