This proposal is intended to switch up the current 10/4/6/4/10 fee structure for the GLYPH vault to 2.5/1/1.5/1/2.5
The result we’re aiming for is to lower the fee amounts to make the buy and sell more inline with the spread we see on other bluechip collections like CryptoPunks.
Since rolling out the second version of NFTX Protocol, we’ve recommended setting fees for new vaults at a 10/4/6/4/10 rate with the idea of optimizing fees generated for liquidity & inventory providers. Since then, we noticed that these fees are too high, especially for vaults that have a high value like PUNK. This caused the vault to become less active and fee distribution to drop.
To encourage more NFTs into the PUNK vault, the mint fee was removed, and the other fees on the vault lowered significantly from the default. CryptoPunks holders now have the opportunity to inventory stake with 0% fee and receive a full token back after 7 days lockup, a new proposal standard of 5/2/3/2/3 was passed.
The same should have been done on the GLYPH vault, but at the time the NFTX DAO had removed all of the GLYPH liquidity and the vault was not functional due to the high buy and low sell prices. Given that the Glyph price is more than double the PUNK price we are proposing lowering the fees by 50% compared to the PUNK vault.
Recently the 0xMarketplace deployment has allowed the NFTX DAO to create a single side position for GLYPH on Uniswap, bringing the purchase price for GLYPH to market levels.
The NFTX DAO holds the most significant portion of GLYPH liquidity although it isn’t staked on the platform.
- Decreasing the fees for the GLYPH vault will improve the fee distribution for existing inventory and liquidity providers, and bring it in line with the new recommended standards.
- The fees are fixed for 30 days after changes.
If this proposal passes, we will switch the current GLYPH vault fees to:
- 2.5/1/1.5/1/2.5% (Mints, Random Redeems, Targeted Redeems, Random Swaps, Targeted Swaps).
This request requires no funding.
- Minimum Quorum: At least 5 votes
- Passing Threshold: More than 50% must vote in agreement for the XIP to Pass. For changes to the NFTX contract, more than 70% must vote in agreement for the XIP to pass.
- Yes, update Glyph vault fee