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% |