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SIP Title Author Status Track Created
0059
Zero Fee Floor Update, March 22
John Light (@john-light), Ororo Monroe (@ororopickpocket), Tyrone Johnson (@tjcloa)
Approved
Contract
2023-03-22

SIP-0059: Zero Fee Floor Update: March 22

Background:

On March 21’st, 2023, the community held the first DLLR Zero Risk Meeting. The recording and subsequent conversation can be found here. Our priorities, in order of importance, are:

  1. Maintain the DLLR peg
  2. Keep redemption level low

In the near term we expect to see multiple DLLR demand drivers emerge. In the interim we are willing to accept significantly reduced borrowing demand. Conversely, to promote DLLR hoDLLRs, we seek to keep the lower bound of DLLR close to $1.00.

The expectation is that the 5% base fee will be temporary and that fees will be reduced to the minimal advisable level over time.

Resolved:

  1. Increase the Origination fee - Base: 5%; Max 7.5%
  2. Reduce the redemption fee - Base: 1.9%

Code changes:

Updating BORROWING_FEE_FLOOR from 2.5% to 5%
Updating MAX_BORROWING_FEE to 7.5%
Updating REDEMPTION_FEE_FLOOR from 2.5% to 1.9%

License:

Copyright and related rights waived via CC0.