xPlenty linked withdrawal fees

Withdrawal fee for all farms that’s calculated on your tvl / xplenty ratio.

Worked examples:

Max withdrawal fee 2.5% on a sliding scale down to 0%

  • $400 tvl in farms / $400 xplenty balance = 100% discount = 0% withdrawal fee

  • $400 tvl in farms / $300 xplenty balance = 75% discount = 0.625% withdrawal fee

  • $400 tvl in farms / $200 xplenty balance = 50% discount = 1.25% withdrawal fee

  • $400 tvl in farms / $100 xplenty balance = 25% discount = 1.875% withdrawal fee

  • $400 tvl in farms / $0 xplenty balance = 0% discount = 2.5% withdrawal fee

Benefits:

  • Fees generated could buyback and burn plenty
  • Give a further incentive to hold plenty / xplenty.
  • Fees aren’t too prohibitive for non-xplenty holders

Seen this idea floated on a couple of other Topics and thought it was a great idea and (hopefully) worthy of its own Topic.

3 Likes

Love this! This is giving xPlenty utility beyond governance and would seem very reasonable. What are your thoughts on tying xPlenty to rewards? Nexo deploys this strategy and I think there is some merit to it.