As mentioned in the Discord:
Please cap the fees on low APY vaults, like EURC. Though that one currently is up to about 4%, past year is has been hovering between 3-4% on average. Therefore a 1% fee on this vault is way too much, especially compared to high APY USDC vaults and similar APY ETH vaults that only have a 0.3% fee.
1% in fees is a huge chunk (the vault being under 4% APY) and it might make me move my EuroC deposits directly with Morpho et al.
I think this could go to vote, and allow @Recognized_Delegates to decide if this should be voted for or against.
I would say that it could be proposed to reduce the fee to 0.5% but open to other ideas.
cc @jensei
Thanks for raising this, @Summer, and welcome to the community!
I agree that the current 1% fee on the EURC vault feels disproportionately high given its historical APY of 3ā4%. Compared to other vaults like USDC or ETH, which have higher yields and lower fees (~0.3%), this could indeed disincentivize deposits and push users to alternatives like Morpho.
I can see a reduction to 0.5% as @chrisb pointed out as a reasonable starting point to maintain protocol revenue while keeping the vault competitive. To follow the governance process, this proposal could be brought to an [RFC] stage.
Would love to hear more especially from @Recognized_Delegates, to align on this.
Iām for a proposal being created, but Iād like to see it being rule based.
E.g.: 3-months below 5% APY, and it qualifies for the lower fee (0.5%).
Rule based would be good, but just alter it dynamically. Fee could be 10% of average APY, with a minimum of 0.1% and a max of 1% of average holdings during the period between deposit and withdrawal?