Balancer contributors have recently been exploring ways to increase non-toxic flow through the protocol. One opportunity which has presented itself is to leverage our close partnership with CowSwap to implement a fee discount when solvers route trades through Balancer liquidity. This would be done by granting the role for calling
setSwapFeePercentage to the
GPv2Settlement contract - then solvers would pass in interactions which lower the fee on the pool, execute the swap, then return the fee to the previous value. The swap fee could be lowered in this manner by around 50-75% to enable a significant increase in “good flow” to Balancer pools.
Most of Balancer’s protocol fees are generated from yield rather than swaps. There is a chance this proposal leads to more swap fees but even if it does not, one of the most important goals for the Balancer ecosystem is to grow our DEX volume market share. This is likely one of the best chances we have to move the needle on that on Ethereum.
The Maxis will retain the ability to call
setSwapFeePercentage on all pool factories so if something unexpected happens and fees are dramatically lowered or raised globally by accident it can be fixed very quickly by the Maxis. Governance can also revoke this role at any time in the future through a future BIP.
If approved, the DAO Multisig
eth:0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will interact with the Authorizer
0xA331D84eC860Bf466b4CdCcFb4aC09a1B43F3aE6 and call
grantRoles with the following arguments:
Which correspond to the roles for calling `setSwapFeePercentage` on the following pool factories
Stable Pool v1
Stable Pool v2
Which corresponds to the address for Cowswap’s