[FIP2] Change the fee rate for Create mode

Abstract

It has been over 2 years since we first introduced the concept of Furucombo. Since then, 4000 different trading strategies were inspired with the drag-and-drop DeFi cubes under create mode. While it is currently free of charge (since its inception), our community is convinced by the value it creates. It is an important step to let it generate revenue to support the governance and further development of Furucombo.

Currently there is a built-in fee parameter set to be 0 which can be modified. The fee parameter can be adjusted to charge a certain percentage of initial funds from the users performing transactions with the create mode. We seek the community signal for the change of this fee parameter. The fees collected would go to Furucombo Treasury, and could be further converted into tokens like COMBO/USDC LP tokens.

Proposal

  • Set the fee rate at 0.2%.

Fee Calculation Example:

  1. Swap 1ETH to DAI, then fee = 1*0.2% ETH.
  2. Swap 1ETH to 1500 DAI + swap 500 DAI to COMBO + swap 500 DAI to AAVE + swap 500 DAI to LINK (4-cube combo), then fee = 1*0.2% ETH still.

Rationale:

The fee rate is derived from the fee for users who do asset management elsewhere. Basically the more complex a transaction, the more cost effective to use Furucombo’s create mode. There would be no fees currently for doing flash loans, as it will not be counted as initial funds. On the other hand, some Furucombo use cases are not super complex but are unique and exclusive. For example, users can customize the swapping route to get a better rate in certain trading pairs (normally Curve related pairs).

Feel free to open the discussion around this proposal and cast your vote here to signal your preference. Forum voting will be live for 7 days until June 28 00:00 UTC time. Thank you for taking the time to vote and be a part of Furucombo’s governance!

  • Yes - I support the 0.2% fee rate
  • No - I will share my thoughts below

0 voters

5 Likes

I think this is a great step forward for Furucombo, and bringing another use case to $COMBO holders. Looking forward to seeing what the rest of the community thinks.

2 Likes

Nice step for Furucombo. Hope this would make Furucombo great.

2 Likes

Would absolutely be a good step, and will add value to the $COMBO token and ecosystem.
Furucombo is providing a service and it makes sence to charge a small usage fee.

3 Likes

I think this proposal also helps Furucombo community to identify what is the most valuable use cases on Furucombo, then we could put more resources on these scenarios to onboard more users. This can be a positive cycle!

2 Likes

I’m glad to see that we have finally come to this point. As ZD said, by charging a certain fee, we can more accurately locate user needs and make these functions more refined. In addition to allowing for more precise positioning, these revenues also allow the entire team to maintain normal operation under any market conditions, which is very important for a protocol that wants to be sustainable.

In addition to agreeing with the proposal for a 0.2% fee, I also want to discuss with you all the minimum threshold for voting:

There is currently a minimum threshold for passing a proposal on Snapshot, as previously proposed by @Guzman_MassAdoption (see this article for details: [Governance Proposal] Initiate COMBO Governance - #14 by Proteus) It is 40% of the circulation of COMBO. Currently (2022/6/24) there are 30,810,925 COMBOs circulating in the market (source: Coingecko), that is, we need 12,324,370 COMBOs to vote for Yes to pass this proposal.

Personally, I think the current number is a bit high. Based on market conditions, there may not be so many people participating in the governance of various protocols. What do you think is a suitable number?

3 Likes

By the way, should we make this proposal FIP2?

1 Like

Maybe decreasing the quorum to 20%-25%?

1 Like

I think the quorum can start from a lower amount, like 1% of circulation, to kickoff the governance process with a lower barrier. While the 7-day voting period can still give everyone in the community some buffer time to say no to certain controversial topics.

2 Likes

To make it a FIPx → Thanks for bringing up the topic! I’m also wondering if every proposal should be a “FIP” and if we need to put FIP1 onto snapshot first before voting for FIP2. What do you think?

Currently there is 30K COMBO requirement to initiate a proposal on Snapshot which helps with filtering, therefore maybe the quorum is not required, or as less as possible like 1M.

2 Likes

This minimum voting threshold was originally designed to allow our community to participate in the operation of this platform and ensure that everyone’s voice is heard. However, since the market is relatively deserted at present, in order to ensure that we can take into account the original hope that the community can participate but will not be unable to advance what should be done, I propose that we reduce from the 40% originally set by @Guzman_MassAdoption to 20% as a start, that is, The current market circulation of 30,810,925 x 0.2 = 6,162,185 is the minimum pass threshold (there must be so many Yes votes on the Snapshot to pass)

If no other comments, we expect to vote on Snapshot in 2 days (June 30) for 7 days, and we will post the url back here, and the results will be updated here.

If you have any other comments, please reply below and let us know, thank you!

1 Like

I think this is necessary. It is better to let the community know which topic we are communicating (there is no need to describe the content in particular, you can directly mention the proposal number)

As for FIP1 or whether every FIP must have a Snapshot to complete the vote, I don’t think it is necessary. We can discuss as much as we like on the forum. If we feel that it is necessary to make a decision at the end of the discussion, we will use Snapshot, but If there is no conclusion or everyone does not want to continue, it is ok to stop at the moment, and there will always be people who are interested to advance the topic.

1 Like

Changed the proposal title to “FIP2” and created the snapshot here, let’s vote!

3 Likes