This has been a very interesting proposal to dive deep into, as I’m a big fan of Aerodrome and the results of their incentive model.
I summarized this thread on Twitter to educate more people about what is happening here and the significance of it.
https://x.com/erickpinos/status/1826975299558392066
I think the experiment is worth running, so long as we analyze the results. L2s are different enough that the optimal fee tier could be a lower one, and the effects of fragmented liquidity don’t seem to be as bad in an L2 environment.
Aerodrome’s TVL is probably most likely the result of the incentive program though.
-Erick