Comment on page
Deposit Fee
Similar to withdrawal arbitrage, “Deposit Arbitrage” is harmful to the protocol’s long term financial health. To counter the attacks, we have devised our own withdrawal fees mechanism.
A very small deposit fee is already sufficient to prevent such an attack.
Assume the deposit amount is equal to 1% of the pool:
Cov Ratioo | Deposit Fee |
|---|---|
<= 1 | -0.0000% |
1.1 | -0.0017% |
1.2 | -0.0012% |
1.3 | -0.0008% |
1.4 | -0.0006% |