Summary
This is a temperature check to determine Curve DAO’s interest in exploring an alternative Admin Fee Structure for a new category of Revenue-Optimized Curve Pools, designed to offer the highest V2-style capital efficiency and liquidity provider returns in the world.
Abstract
Enable reduced Curve LP Admin Fees on select pools that meet certain requirements, either through DAO permissioning or permissionlessly. Additionally, potentially compound a portion of revenue from Reduced Admin Fee pools to encourage long-term Protocol-Owned Liquidity (PoL) and increase Curve TVL and veCRV revenue over time.
Motivation
Curve’s stable and volatile pools use configurable adaptive fee structures that can significantly boost liquidity provider returns compared to standard V2 Uniswap-style pools. However, the benefits of Curve’s efficiency are often offset by Curve’s 50% Admin Fee, compared to competitor DEXs like Uniswap, Quickswap, Fraxswap, Dodo, and others, which typically charge 0%–20% admin fees.
If Curve introduces a new category of LP-Revenue-Optimized liquidity pools with more competitive Admin Fees, Curve could become the world’s highest-TVL V2 liquidity DEX by offering the most capital-efficient V2 pools with the strongest LP returns.
These Revenue-Optimized pools with reduced admin fees could be permissionless or require permission via DAO approval (similar to Gauges). Reduced Admin Fee pools could remain separate from Gauge-enabled pools, since Gauge rewards already provide strong LP incentives.
It is also worth considering minimum and maximum swap fee parameters for Reduced Admin Fee pools. Alternatively, Reduced Admin Fee Pools could be required to maintain a minimum historical fee-based APR to qualify for and retain reduced admin fee status.
To offer the highest average V2 capital efficiency globally, Curve Admin Fees would likely need to be reduced to 15%–25% for this new pool category.
To increase Curve protocol revenue over time—while encouraging protocols to adopt Curve for permanent Protocol-Owned Liquidity—the DAO could compound 10%–50% of Reduced Admin Fee revenue into permanent Curve Treasury liquidity. Then, 50%–100% of revenue generated from Treasury-owned liquidity could be distributed to veCRV holders, with the remainder compounded. This compounding could be applied universally to all Reduced Admin Fee Curve Pools or only to specific DAO-approved pools.
Technical Details (If Applicable)
This proposal will likely require an addition or modification to the Admin Fee Reciever and distributor Contracts.
For
Reasons to support this proposal:
This proposal could significantly increase Curve TVL and veCRV revenue, potentially positioning Curve as the #1 V2-style DEX globally by TVL, volume, and revenue.
Against
Possible reasons to oppose this proposal:
Reduced Admin Fee Pools could draw liquidity away from traditional 50% Admin Fee Curve pools, potentially resulting in a net loss of protocol revenue.
Options for Feedback and Discussion
This is a temperature check proposal. If you support the concept, please share feedback on the following:
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Should Reduced Admin Fee Pools be permissionless with requirements or permissioned?
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Should Reduced Admin Fee Pools be kept separate from Curve Pools with Gauges?
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What should the Reduced Admin Fee be? (15%–25%)
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Should Reduced Admin Fee Pools have a minimum swap fee requirement?
- If yes, what should the neccesary minimum lower and upper range be?
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Should Reduced Admin Fee Pools require a minimum historical APR to maintain eligibility?
- If yes, what should that APR be? (5%–15%)
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Should Reduced Admin Fee pools compound a portion of revenue into permanent Curve Treasury liquidity?
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Should this be universal or limited to pools that obtain DAO approval for POL status
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What percentage of Reduced Admin Fee revenue should be compounded? (10%–50%)
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Should Curve Treasury Liquidity itself compound a percentage of revenue? If yes, how much? (10%–50%)
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