Sometimes there is a huge arbitrage possibility between the sc redeeming and pools like curve. This has been up to 6%.
From here my idea originates, people would like to arb ofc, but the faster, the more interesting this does become and the faster the difference is solved.
So my idea to speed this up is an instant or almost instant swap. This brings more risks in terms from arbitraging the sc. And so here comes the second part. Charge a 3% swap fee, 2% goes locked in the sc 1% goes to nsbt holders.
This swap is usefully in 2 scenarios:
- people who don’t want or can’t wait 24 hours and want there waves fast
- arbing a difference from 3% or more. Since we had 6% this would still be an easy profit for the arb’er
What does neutrino benefit from it:
- we got another way to lock up waves/usdn ‘forever’, this 2% fee paid to the sc.
- NSBT fees might go slightly up also when the arb % is quiet high, or when people want to swap big amount of money fast. It’s like you would have slippage on LP’s, so you will have some ‘slippage’ on the contract for the impatient.
- I believe the arb % will stay lower, since people could make instant profit from a difference bigger then 3%
- 3% is an example number, if we would need 4% to make it more safe er robust or any other percentage, the same principle could be used.
- We should never give the full fast swap fee to nsbt, because the goal is to lock more waves/value, and therefor keeping BR higher ( and this benefits whole neutrino including nsbt)
- The cheap swap from 24 hours wait should keep exist.
- The one third part for NSBT could be reviewed and even done 1/4th is for nsbt in case from 3% , 2.25% for sc, 0.75% for NSBT. Because they still profit from it, and the sc does even more.