At present, the Wing DAO revenue comes from 5% of the loan interest as a commission, which is lower than Compound(15%) and Aave. In order to better complete the WING’s buy-back plan, I propose to increase the Wing commission to be close to the level of Compound and Aave. What do you think the commission(in proportion to the loan interest) for Wing should be?
Not bad. more commission means more buy back. Less wing means higher price. which can cover the interest loss
I think this is superficial. 5% allows for the borrower to have cheaper fees, and the lender to have more income. This increases utility. If you look at Compound and Aave, their interest rates aren’t competitive at all, anymore, and few people are adding to the liquidity pools. It’s peaked. I think leaving it at 5% is going to attract more users.
I agree with this. I think the benefits of a larger % in fees for the buy-back plan are intangible compared to the high APYs that give WING a competitive edge in marketing.
Once Wing levels out it’s growth rate in a month or so, then it would make more sense to revisit the idea.
Very interesting idea, it’s time to do it. While TVL and APY are still very attractive, an appropriate increase in fees is a strong support for the value of WING
under high APY, increasing the fee from 5% has little effect. I prefer to use them directly to repurchase WING.
Sounds like a good idea, it should be good for the long-term value of WING
The handling fee is left in the hands of the user, it is better to directly use it for repurchase, and it should be APY that attracts everyone
I personally feel that 10% is the most appropriate. This will not only maintain a certain competitive advantage, but also increase repurchase efforts.
Just adding this from Telegram discussion…
“If current vote passes with 15% being new commission and it really does prove to have more a negative impact, maybe there should be an appendix made to motion to adjust back to normal rate after buyback/burn process has concluded. Thoughts?”
Assuming 15% gets passed, there is no set amount of time that the rate has to remain in effect, meaning that it could be voted back down to 5% next week if the DAO wanted.
The buyback/burn process is once a month indefinitely until 1m WING has been bought, so I think that after 1 month or so we could re-vote to change the commission rate again.
The proposal has been voted & passed as WIP-05, check voting detail at https://wing.finance/vote