Yearn v2 comes with a 2% mgmt fees on AUM.
Yearn gov should ramp up mgmt fees slowly as vault’s AUM grow up to the 2% max.
With the introduction of Yearn V2, vaults come with a default 2% mgmt fees on assets under management. This is done at the Vault.vyper code.
While vaults are starting up and first harvests are done, these fees are very aggressive for holders. Yearn gov should ramp up mgmt fees slowly.
For example, it’s been 10 hs since the yvHegic vault was released. Since the vault requires 888k Hegic to do the first investment, holders are affected by mgmt fees without getting any profit.
Vaults should start with 0% mgmt fees and gov should increase 0.5% every $1m AUM up to the max of 2%.
Day 1: yvHegic vault is released with 0% mgmt fees.
Day 2: yvHegic vault grows to $2m AUM, gov increases mgmt fees to 1%
Day 3: yvHegic vault grows to $10m AUM, gov increases mgmt fees to the max of 2%
- Added more info so it’s clear the 2% is the max possible.
- For: Vaults will start with 0% mgmt fees and gov will raise 0.5% every $1m in AUM
- Against: Everything stays the same