[RFC] Connecting pJar fees and PICKLEs staked

There are currently two reasons to hold the PICKLE token:

  1. LP mining via participating in the PICKLE:ETH pool
  2. Naked PICKLE staking for % of pJar profits

However, based on this scheme, the PICKLE token’s sole utility is in governance.

Based on a discussion on discord, we have come up with a scheme that may add another utility to the token.

Proposal

Seeing as everyone is inclined on moving from withdrawal fees towards performance fees, the proposal is to correlate your stake in the platform with the amount of fees you pay.

Similar to how Curve boosting works, by staking more PICKLE (LP and or naked) you pay less fees on your pJar earnings.

relative stake (user) = ((user staked LP tokens) / (total staked LP tokens) + (user staked PICKLEs) / (total staked PICKLEs))/2

We can then define the performance fees as a function of the relative stake (∝ means proportional to)

fees (user) ∝ 1/ (relative stake (user))

For instance, the fees can go from 50% for someone that doesn’t hold any pickles at all down to 1% if you hold the entire stake. The trend can be logarithmic such that with a relatively small stake you can get down to around 10-15% fees but below that you need a big stake in the system.


Please share your thoughts and ideas!

2 Likes

I like this idea. Need to think through how it interacts with or replaces the treasury cap and share approach … And also the removal of withdrawal fees and move to more desirable performance fees.

Isn’t this orthogonal to the treasury cap proposal?
This simply defines the amount of income that flows into the treasury, what is done with that money is a different topic.

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Am inclined to prefer to attract new TVL with simple transparant rewards instead of giving more complicated rights to tokens. Don’t really think people will start trading more based on the proposal. Also not necessary from a governance perspective I guess, any other perspectives?

As a staker, LP provider and Jar user, it’s in my self-interest to be in favor of this. From a UX point of view, I would be against it. Apart from complicating the understanding of how everything works, I’d be concerned that for someone who’s not a staker/LP-provider, the perception that they may get when depositing is “I’m being overcharged”, rather than “I’m missing out on a discount”.

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I have to agree with @dafacto on this. As a newbie to this space, its complicated enough. And if now this sort of complexity is added to the UI, it will most likely drive away new TVL. Again just my opinion. I think fees should be plain and simple and we want to welcome everyone, we should not really force them to buy and stake pickle when their risk apatite may be not be up to it.

1 Like