SIP-2002: Revised Volume Source Fee Program
| Author | Mike |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
Simple Summary
Establish a program administered by the Treasury Council to reward Synthetix integrators who drive volume through Synthetix.
Abstract
This SIP proposes a tiered system for volume rebates paid by the Treasury Council to integrators.
Motivation
The current volume source fee program from SIP-132 does not include Synthetix perps and is limited in its ability to provide an effective and sustainable incentive structure for integrators. With the launch of Perps V2 and the eventual proliferation of new instruments built on Synthetix V3, the protocol should establish resources and incentives for new partners to integrate Synthetix contracts and promote network activity.
Specification
Overview
The implementation of this volume program will establish discrete tiers of rewards to be distributed to partners based on total activity. These fees will be paid out by the Synthetix treasury in SNX on a monthly basis.
Tier 1 (<$1M fees generated) - 10% Variable Fee Rate
Tier 2: ($1M - $5M fees generated) - 7.5% Variable Fee Rate
Tier 3: (>$5M fees generated) - 5% Variable Fee Rate
Rationale
Uncapped incentives that are directly proportional to volume driven by each partner maintains a cost effective sustainable incentive mechanism for the protocol to reward new and existing partners.
Technical Specification
Partner Variable Rewards
The total new partner variable rewards will be distributed monthly
Each partner will then earn a variable fee based on the cumulative fee tier they fall in, starting with 10% of fees generated and ending with a terminal rate of 5% of fees generated.
Tier 1 (<$1M fees generated) - 10% Variable Fee Rate
Tier 2: ($1M - $5M fees generated) - 7.5% Variable Fee Rate
Tier 3: (>$5M fees generated) - 5% Variable Fee Rate
This SIP initially applies to Synthetix Perps Markets, but additional Qualifying Markets may be added via SCCP.
Test Cases
n/a
Configurable Values (Via SCCP)
Qualifying Markets Variable Fee Rate Cumulative Fee Tier Thresholds
Copyright
Copyright and related rights waived via CC0.