KIP-106: Raise Conditional Orders Fee
Raise the conditional orders fee to .002 ETH.
The current gas fee for conditional orders is fixed at .001 ETH, however, the cost of executing an order is closer to .003 ETH on average. We propose to raise the fixed fee to .002 ETH.
The Kwenta adminDAO is currently subsidizing the cost of conditional orders to incentivize the usage of conditional orders. With gas costs rising on Optimism the DAO is burning through substantial (1-2) ETH per week in subsidies, and potentially more during high volume weeks.
To ensure the sustainability of this program until the launch of Perps V3 (more gas efficient conditional orders in the works) it's imperative to raise the fee and lower the subsidy.
The adminDAO is subsidizing roughly 2/3s of the cost of conditional orders. At current ETH prices (~$1800 at the time of writing) and gas prices the average cost per conditional order is a little under $5.40 (.003 ETH). The adminDAO is paying $3.6 of each order.
Data gathered from 16 October 00:00 until 23 October 23:59:
- 1049 txs
- Fee in ETH: 2.863759 ETH
- Fee in USD: 5085 USD
Extrapolating from the rate of 1049 orders per week the adminDAO is spending $196k per year subsidizing orders.
The proposal to raise the fee to .002 ETH would cut this cost in half.
Note volume was higher than normal on this week
The protocolDAO is to call
setExecutorFee on Settings.sol with the param
2000000000000000 (.002 ETH)