Per the recent Bancor DAO approved proposal, an incredibly low 0.001% fee for all stable-to-stable trades has been successfully implemented on Carbon DeFi!
Prior to launch, the Bancor DAO voted to implement a protocol-wide taker fee of 20 basis points (0.2%) per trade. While this fee structure is competitive to, and in most cases less than, alternative Ethereum based decentralized exchanges, it was not in line with the industry standard 1–5 basis points (0.01% — 0.05%) stable-to-stable trading fee.
The Custom Taker Fee on Stable to Stable Trades Proposal set out to surpass industry competition by introducing a mere 0.001% fee for stable-to-stable trades — equivalent to 1/10th of a single basis point. The proposal passed with not a single Bancor DAO vote in opposition.
The recently implemented fee structure for stable-to-stable trading offers several advantages beyond substantial savings to Carbon DeFi takers. One such advantage is the enhanced frequency at which a strategy is traded against, resulting in increased order fulfillment for strategy makers and an increase in trading volume, a widely regarded metric within the industry. Another advantage is the potential to draw in new users who may have previously been unfamiliar with Carbon DeFi.
The Bancor DAO will be adding additional stable-to-stable pairs beyond the initial pairs mentioned in the proposal, reflecting its commitment to offering a one of a kind trading experience to both makers and takers of Carbon DeFi. Your input and collaboration are valuable in this ongoing effort. If there are stable pairs that should be added to the list or if you have any suggestions, please share them in the Carbon DeFi Telegram or on the Bancor Governance Forum.
We look forward to seeing how these changes empower our community of both strategy makers and takers on Carbon DeFi. Thank you for your continued support, and stay tuned for more updates!
Key Features of the Implementation:
Identifying Stable Pairs: A new function within Carbon DeFi smart contracts now empowers the Bancor DAO to identify stable pairs that should have a fee different from the default 20 BP fee. The initial list includes popular pairs like USDC/USDT, USDC/DAI, USDC/FRAX, USDC/LUSD, and USDT/DAI.
Fee Query Function: Another critical feature introduced is the fee query function, which allows anyone to easily check the fee applied to any specific pair. This transparent approach ensures that users are well-informed about the fees associated with their trades.
For more on Carbon DeFi check out Automated Recurring Limit Orders Explained — The benefits of becoming a strategy maker on Carbon DeFi.
