RE: Hive-Engine Diesel Pools: CONTRACT DEPLOYED!!!!

[dalz]

Great job, finally someone is doing this!

This said, I'm not totally sure what to think about the ZERO FEES for swaps. Fees on DEXs like Uniswap etc, are the core at the business model.... fees are the reason people provide liquidity... others tokens incentives are the extra....

Maybe you want to reconsider this, or at least make it optional for pools to choose the value of the swaping fees.

Comments

[miniature-tiger]

Thinking along similar lines.

Much as I hate fees (and think crypto should generally be designed to remove them wherever possible) the Uniswap system uses the fees for balance:

• For liquidity providers: To compensate for the risk of impermanent loss.
• For arbitrage traders: As a charge against (largely) risk-free arbitrage profits.

Without the fees:

• The incentives would need to do the heavy lifting to compensate the liquidity providers. Which risks degrading the price of the incentives.
• The arbitrage traders (bots) make bank.

I think. At least on the typical X * Y = K liquidity system.

Posted Using LeoFinance ^Beta

[ocupation]

That's true, the pools should have the ability to determine how much fees will the tx cost. How do you reward liq providers if not with fees - printing new governance tokens?

[urun]

Agree with you.

And I hate it to say, but that's the same problem with Hive token.

Fees give it a reason to provide liquidity and develop it.

Fo Fees would end up in a negative loop like there is no reason to power up 1M Hive. No use cases.