A new, radically different DAI/YFI pool created

General Chat
1

Hello, YFI community. The following paper describes a scenario where a 10% fee on a Balancer pool created new trading and income dynamics.

Therefore, I have seeded a new Balancer pool: 50% YFI, 50% DAI… 10% fee

Read this Medium post first: https://medium.com/balancer-protocol/high-fee-balancer-pools-for-swing-trading-8bc1c169a4c2

New balancer pool: https://pools.balancer.exchange/#/pool/0x0b7ee2f06837e16e6a5239a75a5ce83cdcb43fd6/

ETA: For those unfamiliar with Balancer pools, this is a “purist pool” - there are no JeffCoins and JeffFees in the pool. 100% of the fees go to liquidity providers.

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interesting idea. thx for sharing.

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Why would anyone use a pool with such a high fee when they can get lower rates elsewhere?

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Recommend reading the Medium post above for an explanation, plus some background on Balancer pool rebalancing.

Eventually there will be a profitable trade.

This strategy creates fewer trades, with higher income per trade.

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I see, it’s interesting.

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Closed since inactive. Feel free to reopen if this topic is still relevant.