Increase USDL/USDC fee from 0.01% to 0.02%

Proposals
1

Summary:

Increase the trading fee of the USDL/USDC liquidity pool (0xAb96AA0ee764924f49fbB372f3B4db9c2cB24Ea2) from 0.01% to 0.02% , while keeping offpeg_fee_multiplier fixed at 5 , based on observed CowSwap order flow and expected LP revenue gains.

Abstract:

This proposal suggests increasing the fee of the USDL/USDC pool on Curve from 0.01% to 0.02%. All of the on-chain USDL liquidity is deployed on Curve and when taking a deeper look at CowSwap’s order flow of USDL (thanks Philipp!!!), 100% of the volume is expectedly routed through the Curve pool.

Raising the fee is expected to improve earnings for LP’s and the DAO while not loosing out on volume. The offpeg_fee_multiplier remains unchanged at 5.

Motivation:

Order flow analysis shows that the Curve pool at 0xAb96AA0ee764924f49fbB372f3B4db9c2cB24Ea2 captures 100% of CowSwap trade volume for the USDL/USDC pair.

photo_2025-06-10 13.36.50
photo_2025-06-10 13.36.501280×936 102 KB

Specification:

POOL = "0xAb96AA0ee764924f49fbB372f3B4db9c2cB24Ea2"

ACTIONS = [
    # Set base fee to 0.02% (2,000,000), offpeg_fee_multiplier to 5 (50,000,000,000)
    (POOL, "set_new_fee", 2000000, 50000000000)
]
1 Like