Increase xSushi taker fee to 0.1%

Proposing to increase xSushi taker fee from 0.05% to 0.1%.

Currently less than 30% of all sushi tokens are being staked as xSushi. To incentivize the community growth and participation I propose an increase to the xSushi fee to 0.1%.

Should we increase the fee from 0.05% to 0.1%?

Would love to see someone create a poll or hear some discussion about implications of this proposal.

1 Like

Yes we should.
That will increase demand for xSushi, which will increase demand for Sushi, which will increase Sushi price, which will increase LP because APY from Sushi rewards will be higher, which will improve slippage, which will drive more traders.

2 Likes

I believe the team can make better use of the money. but right now they are showing otherwise

I don’t think it’s the right move considering partners like Olympus with protocol owned liquidity.
By cutting their profits they could decide to move to another AMM like univ2 that has no protocol fees.

2 Likes

It will not increase Sushi demand long term. Sushi demand is driven by the underlying business of the exchange – volume. Cutting the fee to SLPs from .25% to .20% is a huge drop in profit that they need to offset impermanent loss.

This would absolutely kill the exchange and send liquidity to other AMMs. Fees are plenty high right now for xSushi. Think of SLP fee as cost of goods sold for the SushiSwap business. They should not be squeezed to a pulp because they are our partners in a way.

Could the additional 0.05% fee be made up from elsewhere or is SushiSwaps total fee capped at 0.3%?