VNP-19/20 - Enable Volume Discount Program
Change parameter volumeDiscountProgram.maxBenefitTiers to 5 and volumeDiscountProgram.maxVolumeDiscountFactor to 0.5.
The above changes will allow a volume discount program to be enabled (if I understand correctly). Having a way to reward loyal users with lower trading fees is super important for the growth of Vega. A Volume Discount program is industry standard and something that is needed to ensure Vega stays competitive and inviting for new users.
Next, I propose to introduce the following Volume Discount Program:
The above Volume Discount Program offers a 10% fee reduction on the base fee for every 5x increase in 30d Trailing Volume for 1 year. I believe the discount is fair and in line with CEXs, but I understand that we may want to be more aggressive if users are still unhappy. The fee tiers make it not too difficult to achieve a meaningful fee reduction.
Given that MMs can set fees across markets, this may require us to adjust the Volume program occasionally.
In general, I think that DEXs like Vega need to be significantly more competitive on fees vs CEXs for people to fully migrate. Given the reality that CEXs can offer a lot more in terms of product, marketing program/initiatives, etc. However, I’m currently conscious of not setting fees too low to where validators are unhappy.
Full Proposal JSON 1:
{
"rationale": {
"title": "VNP-19/20 - Enable Volume Discount Program",
"description": "Change parameter `volumeDiscountProgram.maxBenefitTiers` to `5`."
},
"terms": {
"updateNetworkParameter": {
"changes": {
"key": "volumeDiscountProgram.maxBenefitTiers",
"value": "5"
}
},
"closingTimestamp": 0,
"enactmentTimestamp": 0
}
}
Full Proposal JSON 2:
{
"rationale": {
"title": "VNP-19/20 - Enable Volume Discount Program",
"description": "Change parameter `volumeDiscountProgram.maxVolumeDiscountFactor` to `0.5`."
},
"terms": {
"updateNetworkParameter": {
"changes": {
"key": "volumeDiscountProgram.maxVolumeDiscountFactor",
"value": "0.5"
}
},
"closingTimestamp": 0,
"enactmentTimestamp": 0
}
}
Full Proposal JSON 3:
{
"proposalSubmission": {
"rationale": {
"title": "VNP-19/20 - Enable Volume Discount Program",
"description": "This enacts a Volume Discount Program with a 30D window and 5 discount tiers."
},
"terms": {
"updateVolumeDiscountProgram": {
"changes": {
"end_of_program_timestamp": TBD (1 year),
"window_length": 30,
"benefitTiers": [
{
"minimumRunningNotionalTakerVolume": "1000000",
"volumeDiscountFactor": "0.1"
},
{
"minimumRunningNotionalTakerVolume": "5000000",
"volumeDiscountFactor": "0.2"
},
{
"minimumRunningNotionalTakerVolume": "25000000",
"volumeDiscountFactor": "0.3"
},
{
"minimumRunningNotionalTakerVolume": "125000000",
"volumeDiscountFactor": "0.4"
},
{
"minimumRunningNotionalTakerVolume": "625000000",
"volumeDiscountFactor": "0.5"
}
],
}
},
"closingTimestamp": 0,
"enactmentTimestamp": 0
}
}
}
