Restructure fees and align incentives

banteg · 6 November 2020 01:28

Collected the data across all vaults. The new model results in 85% the fees collected by the old model.

Current model (0.5% withdrawal fee, 5% performance fee)

Total 4,025,570

Withdrawal 3,459,657
Harvest 565,913

Suggested model (2% management fee, 20% performance fee)

Total 3,421,646

Performance 2,263,108
Management 1,158,538

Here is the raw data to do your own modeling.

gist.github.com

https://gist.github.com/banteg/79c52a346aee1785e92858fbb022434d

yearn-fee-model.csv

,timestamp,name,action,price,balance,share_price,fee,mgmt,perf
0,2020-07-30 07:06:45+00:00,curve.fi/y,harvest,1.0468725251788589,100388.23227073318,1.0000277929788117,2.790010469749684,,
1,2020-07-30 09:40:09+00:00,curve.fi/y,harvest,1.0468833301706677,307041.85204383195,1.000534555089174,155.51404608643543,1.874988032312284,651.2202498211288
2,2020-07-30 11:43:53+00:00,curve.fi/y,harvest,1.0468990666305042,307247.7418134495,1.0012054728408435,205.88976961753934,1.5134131527951664,862.1832305654858
3,2020-07-30 13:34:16+00:00,curve.fi/y,harvest,1.0469060558368166,446724.8137692697,1.0017239431700762,231.21495982058403,1.9630373917264583,968.2413665449426
4,2020-07-30 17:19:58+00:00,curve.fi/y,harvest,1.0469503863718255,447220.3650325036,1.0028351542560714,495.55126323388606,4.018430961126466,2075.2703460390526
5,2020-07-30 22:26:43+00:00,curve.fi/y,harvest,1.0469854436660189,447792.10804099723,1.0041172157026155,571.7430084936396,5.468634894283172,2394.426429642631
6,2020-07-31 04:01:28+00:00,curve.fi/y,harvest,1.0470115157644455,443796.5519649064,1.0051518412174487,456.8098243761474,5.914707151256209,1913.1405865446407
7,2020-07-31 09:25:26+00:00,curve.fi/y,harvest,1.0470600073965144,484299.681376599,1.0061324882494176,472.03231251562454,6.246882851655565,1976.9846265360147
8,2020-07-31 14:14:56+00:00,curve.fi/y,harvest,1.0471062047692585,493739.9379542186,1.0069053847634193,378.99278585933195,5.691344025030255,1587.3827905443736

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Topic		Replies	Views
YIP-51: Set Vault v2 fee structure YIPs snapshot , yip , approved	34	6669	9 December 2020
Proposal: Revamping Fees Vaults	50	5366	13 December 2020
[Proposal] Adaptive mgmt fees based on AUM Protocol and Governance	20	3054	9 February 2021
[Working Proposal] Innovating on Fee Structures Ideas	37	3477	23 October 2021
Keeping Yearn Great - Funds, Incentives & Rewards Feedback	25	10557	6 February 2021

Restructure fees and align incentives

Current model (0.5% withdrawal fee, 5% performance fee)

Suggested model (2% management fee, 20% performance fee)

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