PIP-6 : Revamping our fees on Quest to stay competitive in a bear market (Formerly PPP-2)

Paladin Improvement Protocol (PIP) PIP - Approved
3

I totally agree about our first framework being inefficient with the current market state, which is why I also worked on a update of this program, which i’ll share after.
Just to be sure, can you confirm that the volume mentioned is weekly ?

I believe that this framework can become quite complicated due to several conditions depending on the project, which might lead to a lot of modifications in the future.

The Ecosystem partner reducing the Curve and Balancer fees of 50% make sense, but 10% of the supply owned seems a bit low to include the liquid wrappers in this category, maybe 15-20% is better.

Convex is bribing ~500k/week so they would have the 2.5% fees effective with the following framework anyway, and Aura has 23% of the veBAL supply.

Otherwise, I think we shouldn’t create several conditions depending on if the client is Sporadic, Regular, Major or Strategic, but rather try to make it accessible for as many project as possible, and the more volume the more it gets interesting for the projects to use Quest.

Here is the PPP Framework update I worked on:

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Modifications from V1:

  • Add a lower minimum to be included in the fees sharing to motivate small projects to try Quest (25K vs 50K initially - 4.75% fees paid)
  • Double the fees sharing for 50K and 100K (10-20% vs 5-10% initially - 4.5% and 4% fees paid, same fees than votium from 100k weekly volume)
  • Change intermediary amounts : 75K, 200K, 300K, 400K and remove 250K, 1.2M, 1.5M and 1.75M
  • Reduce by 4 the limit to reach 50/50 split (500K vs 2M initially - 2.5% fees paid)
  • Nearly double the fees sharing for 1M (55% vs 30% initially - 2.25% fees paid)
  • 20% Increase and cap of the fees sharing (60% vs 50% initially - 2% fees paid)

This framework would become accessible for anyone who want to test or actively use Quest, which could bring more projects even if they don’t have a 250K budget (sporadic clients), major clients would have a lower fees cashback up to the 250K milestone (1.25% vs 2%), but higher cashback for bigger amounts.

Fully agree on this point, but I think it would be much simple with this update

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