No More Minting Fee

Temp Check Discussion
1

No More Minting Fee:

I haven’t the slightest idea how people feel about this one. However, I strongly believe this fee is terrible for the overall experience and usage of CDP’s on the Indigo protocol. It may not seem like much to some, but it’s more of an annoyance and bad taste for the borrower, than its worth keeping implemented for INDY stakers to collect rewards from. Potential users may stray away from minting more, or even opening a CDP in the first place. It doesn’t feel right to me to not only have to worry about interest accrued from borrowing, but on top of that, needing to pay a fee to even start borrowing. To state the obvious, that is 2 headaches you need to worry about when taking on risk, instead of just 1. Furthermore, if youre an indecisive trader, which many are, needing to worry or consider this fee when wanting to make quick decisions in a fast moving market can cause confusion and reluctancy. Just as you should not have to worry about topping up collateral and worrying about future withdrawal fee’s for keeping a healthy collateral ratio, as we did in V1, the same should be true when deciding whether or not to mint in V2 and beyond.

Get rid of the minting fee and more minting will take place, which in turn creates more interest accrued. And now that INDY stakers will soon be earning a piece of the pie from the interest CDP’s produce, it will more than make up for whatever they might of earned from the minting fee. Even if it doesn’t increase minting percentage, which I feel is highly improbable, I would still apt for doing away with this fee anyway. This is all coming from a huge INDY bag holder. In other words, I’m willing to give up my extra rewards from this set parameter in order to provide a better trading experience for Indigo i-asset minters.

I really hope the majority agree. Cheers.

D₳ppT₳rd

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Minting fee was introduce to substitute collateral fee which was also a friction by itself.

So I can totally understand where you are coming from. it’s a fair take and things can always be reviewed and upgrade/pivot when its needed

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I support this proposal, but it’s contingent on Proposal for Phase One Treasury Management or anything similar passing

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Before I would vote to abolish the minting fee, I’d like to see a much more comprehensive discussion on where we are with fees and interest and then come up with a well thought out way to move forward for the betterment of the protocol now that these new fees and interest have been in place for a while.

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I understand the willing to remove such fees, I equally think that 0,5% minting fees, but not only, 0,5% LP and Indy staking withdrawal fees may be discouraging… however, interest rates may not stay high for ever, and an alternative revenue to interest rate may be generated…

What I would recommend may not be to remove minting fee, but rather to set a discount based on the amount of staked Indy (with the existing same condition for receiving reward I.e. vote within last 90days)…

E.g. -0,01% per 1000 Indy

Just a thought…

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