Withdrawal Fee
“Withdrawal Arbitrage” is able to drain fund from the pool and is harmful to the protocol’s long term financial health. To counter the attacks, we have devised our own withdrawal fees mechanism.
In most cases, however, a very small withdrawal fee is already sufficient to prevent such an attack.
When the withdrawal amount is equal to 1% of the liability:
Cov Ratio | Withdrawal Fee* |
|---|---|
>= 1 | -0.0000% |
0.9 | -0.0011% |
0.8 | -0.0093% |
0.7 | -0.0518% |
0.6 | -0.2731% |
0.5 | -1.6127% |
0.4 | -12.41% |
<= 0.3 | -100% |
*Assuming
k=0.00002 and n=7, which is the main pool configuration
Last modified 7mo ago