Introduce deposit and/or withdrawal fees for Yearn affiliate jars

There’s been quite a bit of discussion on how to tackle the profit/pickle emissions on the yearn affiliate jars, as they right now offer way better rates than what the rest of the market offers, while bringing very little profit.

I’ll link a post by napa on the feedback section: PICKLE farming proposal that will make PICKLE go up. | Voters | Pickle Finance.

The assumption that we make 20% off of the profit the yearn vault makes is incorrect though, we actually make even less on it.

Due to that I propose that we introduce a deposit and/or withdrawal fee on the yearn affiliate jars. This could either be a 1% deposit, and 0% withdrawal, 0.5% deposit, and 0.5% withdrawal, or 0% deposit, and 1% withdrawal fee.

Maybe a dynamic fee system could be explored where lowering the fee makes sense, if TVL grows to a point that we get a significant portion of the profit sharing by yearn.

10 Likes

I am Wunderbernd and I agree with this proposal.

4 Likes

i agree it could be in the majority of users’ interest to do something to distribute protocol revenue more equitably. I’m not sure what doing that should look like but i’m all for exploring options

2 Likes

I support this if it wont affects the relationship between yearn and pickle. Also maybe before implementation we could raise the issue with them for a temperature check. Who knows they may make the deal sweeter w/o adding a financial barrier to entering the jars.

my vote: if yearn doesn’t have a better option 0.75% deposit and 0.25% withdrawal lol Im dumb enough to not realizes thats 1 percents in a hurry.

1 Like

Looks good to me :+1:

I am Beemster and I support the fact that Wunderbernd agrees with this proposal

2 Likes

Yeah, agreed. The yearn jars are a loss-making product for pickle. It doesn’t make sense to leave it as it is. Even if the DAO cannot reach a consensus on this (i.e. yearn DILL whales prevent a proposal about this from passing), the pickle team should definitely intervene and introduce deposit/withdrawal fees.

As a car manufacturer, you wouldn’t ask your customers to vote on fixing a crucial problem with your car. You would just fix it. The wrapped yearn jars are broken, they’re making a loss, at the least holding Pickle back, at worst harming pickle.

It’s the best yield in crypto for naked USDC, and it’s not priced correctly or driving profit for the protocol! DAO consensus or not, it’s a broken product that’s gotta be fixed.

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This seems more in line with the direction discord consensus has us moving and I support it.

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since I’m already in the jar/farm, just a deposit fee seems best :joy:

but I’d support either of the proposed variations.

2 Likes

You got my “heart button” on this one.

1 Like