Simple Summary

Implement a one basis point (bp) fee to Synthetix V3 markets on Base.

Abstract

Introduce a 1bp transaction fee to Synthetix V3 on the Base network.

Motivation

With Synthetix V3 on Base reaching a stage of maturity, it is now appropriate to introduce a transaction fee that reflects the value provided by the protocol. This proposal is driven by the need to create a sustainable revenue model that aligns the interests of all stakeholders within the ecosystem.

The introduction of a 1bp fee will not only enhance the protocol’s profitability but also position it for long-term success by providing the necessary resources to support future developments and maintain market competitiveness. Additionally, the fee introduces optionality for new use cases such as rebates and revenue sharing, further expanding the potential utility of the protocol.

This fee is modeled after the success of the V2 fee structure and could be expanded to other integrations as we gather more data from its implementation on Synthetix V3.

Specification

To implement this proposal the DAO will:

Work with Synthetix to find an implementation method for a 1bp fee on the Base network that does not compromise our UX standards. This fee will go directly to KWENTA stakers as per the current fee share model. A KIP to increase, decrease, or alter the structure of this fee can be introduced by the community at any time.