Fee Structure V2 (Cascading Proposal👀)

[CryptoBamba]

Background: After internal discussions within the community and between the community we came with some Ideas that we believe can really put us at the for front of the competition.
Users go where they can get more “Buck for their Money” and not surprisingly MuesliSwap is equipped to be the cheapest and fastest Dex with all the right fundamentals already in place

Notice:This Proposals shouldn’t be taken lightly as we should think about the disadvantages the same as the advantages!

thorough discussions will be welcomed!
let’s get in to it

Q1: Competitors take 0.3% for pool fees, we can give 0.2% to the pool and take 0.1% (for AMM and order book) and put 0.95 ADA batcher fees. We’ll be the cheapest DEX and keep generating revenues (0.1% of all transactions).

1. Agree
2. Disagree

Reasoning:
Currently the Orderbook makes Muesli the cheapest with No slippage and no Pool fee.
Muesli’s Batcher Fee is also the cheapest amongst all DEXs however when it comes to AMM Swaps that don’t involve the MultiDex Routing Feature. AMM swaps above 100 ADA encounter frontend Fees that doesn’t make us the cheapest DEX on Cardano.

If we add 0.1% fee to The Orderbook and take 0.1% from pool fees, that’s enough revenue the supplement the current model even better (currently 0.02-0.05% front end fees)

The belief is that most liquidity providers enter to earn Farming Rewards and most times look pass the pool fee collection because Farming is the reason they enter in the first place.
By retracting 0.1% Fee from the LP pools Users will still enjoy farming Rewards and more Volume due to Muesli AMM being Cheaper then all other competitors (Still Earning 0.2% pool fees)
Another point is it will make providing liquidity on the DEX cheaper as well.

This way AMM Swaps On Muesli will become the cheapest On all Cardano
The protocol will earn more (0.1% of all transactions)
And the treasury will gain more as well (20% out of 0.1% of all transactions Fees go to the treasury and possibly make a more substantial buy back of MILK.)

Using the MultiDex Routing feature and other unique tools for traders we will be undoubtedly Be the go to DEX on Cardano!

Of course using the MultiDex Routing Require some Front end fees (For Batchers on other Dexs)
so Front end fees won’t be completely eliminated.

If we pass this one I have another Amazing Proposal in my opinion that will bring a lot of value to MuesliSwap and it’s community.

[Selim]

If we become the cheapest DEX on Cardano, and at the same time, the only hybrid DEX (combining AMM with an order book), the only platform utilizing multiroute (enabling exchanges between ANY token for any other token via the AMM pool), and the only one with a multi-DEX aggregator, I see no reason for anyone to use a different DEX. This undoubtedly positions MuesliSwap at the forefront of the competition.

1. 100% Agree

[QuakerGoats]

Could you maybe give an illustration of how a hypothetical trade would look using your suggestion vs what it looks like now on the Dex? So if I wanted to buy 1000 $Ada worth of Milk and the price of 1 Milk was exactly 10 $Ada can you break down how much the fees currently would be under today’s system and what they would be and where they would go under your new model?

[CryptoBamba]

Yes!
for a swap of 1000 ADA (0.25$) worth of MILK (1$)

In the case you hold 100+ MILK you also get a discount on the Front and fees in Model 1.
we can apply the same Discount on Model 2.
and make the Dex the cheapest without holding MILK and even more cheaper with Holding MILK.

[qwqw]

100 MILK is nothing, it must be increased to 500 to get some real discount. the whole discount program needs to be reworked for sure! people who hold a lot of MILK have the same discount as those who hold just 500, it cant be accepted!!!

[Mypuk]

Agree to increase to 500 milk for discount and other activities

[Moonshot]

For a lot of the community 100 milk is definitely something. Perhaps a tiered system that creates an incentive to holding more milk for more discounts, access to “pro level tools” etc.

[BlockJock]

tiered would be better, think long term 6 mths to a year from now ( not “10 days make milk go up” lol its already up significantly from 6-12 mths ago. 100 is still a great starting point, then from there 1k milk and 10k milk tiers. This gives those with milk currently to buy more as well so as to engage in the gov structure.