| id | Title | Status | Author | Description | Discussions to | Created |
|---|---|---|---|---|---|---|
| TIP-233 | Raise LP performance fee on Overtime, raise USDC LP caps | Draft | Padzank (@padzank) | Raise LP performance fee to 30%, raise USDC LP caps to $2M per network on Overtime | https://discord.gg/thales | 2024-10-21 |
Raise LP performance fee to stakers from 20% to 30%, raise USDC LP caps from $1.5M on Optimism and $1M on Arbitrum to $2M per network
With the recent uptick in activity and usage of Overtime came also a higher interest in liquidity provided in the USDC pool on both Optimism and Arbitrum. With amazing PnL performance of the pools since the launch of V2, both pools reached the hard caps of $1.5M and $1M respectively. Optimism USDC pool performed ~ +41% in 4 months since launch and Arbitrum USDC pool performed ~ +22% in 2 months since launch.
To better balance the fee distribution structure between LPs and THALES stakers, this TIP proposes to increase the performance fee for USDC LP pool on Overtime from 20% to 30% on both networks. This should further significantly increase the benefit of staking THALES.
This TIP additionally proposes to raise the deposit caps of USDC pools to $2M on both networks.
Liquidity providers of Overtime USDC pools on Optimism and Arbitrum have been enjoying a lot of positive PnL since the launch, on average. This has caused a lot of interest in providing USDC liquidity, which filled the caps. Next move should logically be to increase the caps of USDC pools.
With the PnL performance data evidently showing significant returns for LPs of USDC pools, it also is a logical move to increase the performance fee of positive PnL rounds to 30% from the previous 20%, so the balance between THALES stakers and LP providers is more clear and aligned with the protocol.
These parameter changes also prepare the field for future increases of baseline liquidity of USDC pools to try and incentivise more USDC betting volume, compared to THALES betting volume.
This TIP entails the Thales Protocol DAO to increase the LP Performance Fee variable from 20% to 30%. Additionally this TIP entails the Protocol DAO to increase the USDC LP deposit caps as following:
- Optimism: from $1.5M to $2M
- Arbitrum: from $1M to $2M
TBD
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