[FIP3] Change the fee rate for Create mode

Update (8/23)

The vote ended, FIP3 passed, with 7.7M on Yes.

Will adjust the fee from 0% to 0.2% (Furucombo Create mode only) on 8/31.

About FIP3

Since FIP2 did not pass the Snapshot vote (99.99% of the vote goes to Yes, we just need another 300,000 more Yes to reach 6M Yes) but FIP2 is a very important topic for Furucombo, we decided to propose it again with the same content. If you originally supported this proposal, please continue to support us, and if you have different opinions, feel free to leave any comment below.

Discussion: 8/8 - 8/14
Vote (On Snapshot): 8/15 - 8/21

Author of this proposal is @blake (Original post)

Abstract

It has been over 2 years since we first introduced the concept of Furucombo. Since then, 4000 different trading strategies have been inspired by 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. Thank you for taking the time to vote and participate in Furucombo’s governance!

5 Likes

Should be able to include more votes and thoughts this time since our snapshot page could count the voting power from smart wallets now!

4 Likes

Just created the Snapshot vote → Snapshot, everyone please cast your vote before 8/21 7pm UTC (Worldclock)

1 Like

The FIP3 voting has ended this Monday. Compared with FIP2, we got more votes (5.7M → 7.7M), and more community members participated (38 → 43). We are very excited about the results!

We will adjust the fees of Furucombo Create from 0% to 0.2% according to the voting result (7.7M Yes), all income will be concentrated in the vault, and then we will discuss with the community how to use this fund properly

If other people want to discuss any topic, feel free to do it in the forum, if necessary, we will cooperate with you to propose the next FIP to make the Furucombo ecosystem more complete!

2 Likes