[RFC] Proposal to active 2, 3, 4 bps fee-tiers on Base

Thorough research! It makes sense to lower the LP fees considering the volume being aggregated through alternative frontends:

  • $295,000,000 to Aerodrome

  • $65,000,000 to Uniswap

Additionally, Aerodrome has high spending incentives via token emissions. Each Aerodrome epoch, which occurs every 7 days, disburses around 12,300,000 Aero. At the current Aero price of $0.64, this amounts to approximately $7,872,000 per week.

Scroll down to the Aero supply distribution section, this analyics page also includes data on bribes vs. fees, including Slipstream:

https://dune.com/0xkhmer/aerodrome

Potential Risk: Aerodrome has a highly aligned token with its users. Its evangelized users, who are also token holders, are likely to be sticky—remaining loyal to the protocol regardless of a competitor’s decreased LP fees.

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