CIP#11 - Which pool should admin fee be tested on?

[charlie_eth]

Summary:

With CIP#7 and #9 (50% admin fee on existing trading fees to be distributed as CRV) receiving a lot of support, we would like to propose the admin fee to be implemented on one or multiple pools.
If there is sufficient support for one of those two options, a DAO vote will created and will be subsequently implemented

Implementation:

The steps will be:

1. Signalling vote on implementation of a new admin fee - Success
2. Signalling vote on how those fees should be distributed - Success
3. Signalling vote on which pools will receive the admin fee <== We are here
4. On-chain vote: Admin fee implementation on DAO

Options:

• Y Pool
• sUSD Pool
• ren Pool
• sbtc Pool
• All Pools

The idea behind suggesting one pool and not all from the start would be to check the impact of halving fees for liquidity providers to direct it to veCRV holders.

Based on recent volumes this proposal could distributed over $10M per year in trading fees alone to governance participants before even considering gauge withdrawal admin fees.

As a reminder, this would not change the trading fee (0.04%).

Poll:

Snapshot

[Neozaru]

I’d go for the sUSD pool as it as :

• Lot of liquidity
• Lot of volume

Although the external incentives by SNX also make the impact of the change lower, and thus the results might not represent what we will get when applied to other pools.

[charlie_eth]

Yes, this is what the team suggested for similar reasons. This is a good pool to test it on.

[drolitjie]

What type of testing is needed? Technical or how it affects liquidity?

[charlie_eth]

How it affects liquidity mostly

[drolitjie]

I think since CRV farming outweighs pool APY by far at the moment, it is difficult to envision a negative effect of admin fee on liquidity. If anything it helps CRV price and thus attracts more liquidity.

SWRV is about to drop the trading fee to route more volume through their pool. Maybe we should also consider.