Has anyone talked about removing withdrawal fees from the sett products? Or set a timer and remove the fees after XX mths of staking?
I understand the withdrawal fees earned may contribute alot more to the treasury but to newcomers, this is completely off-putting as it felt like a loss rather than earning if i stake.
The argument that implementing withdrawal fee as an enforced long-term commitment is not right at all, people are simply looking for the next higher APY for their bitcoins and they will not even come with such fees imposed.
The end result is Withdrawal fee is we are contributing Badger MAXIS to the space , with lower TVL in bitcoins Month-on-month , while other dapps and yield aggregators simply outcompete badger.
0.5% withdrawal fees are purely to enhance the revenues of the protocol. In most other protocols, the fees are 0%. Furthermore, If any fee is warranted, it should only be on profit accrued, not overall principle upon removal. This “double whammy” effect of high withdrawal fees on entire portfolios is something I’ve not seen anywhere else in crypto. It needs to be discussed at length and rectified to better serve investors and the ability of the protocol to encourage new investors going forward.
yearn used to and I think may still have withdrawal fees for the V1 vaults but most have moved to a performance fee where only fees from profits are deducted. I agree that badger should do this too. These withdrawal fees are very offputting and punitive.
Agree. Yields are far from stable so we’re all experimenting here with our hard earned BTC and withdrawl fees feels very mutual-fund-ey. People are used to trade fees that are minimal (see mass exodus from mutual funds to ETFs), and having frictionless entries/exits should be a design principle.