Gauntlet intends to Abstain from this vote per our previous feedback and similar comments from @Doo_StableLab and @GFXlabs. While we see potential benefits, there isn’t a clear path toward success, and it doesn’t appear that additional meaningful research has been conducted to support the thesis that there is a significant upside, as requested following the Snapshot vote.
While lowering fee tiers on Base may provide a short-term victory in attracting volume, a few factors, including the sustainability of the mercenary incentivization of ETH/USDC liquidity on Aerodrome, the potential fragmentation of liquidity across multiple Uniswap fee-tier pools, and Aerodrome’s ability to undercut or match Uniswap fees to win-back volume quickly, limit this experiment’s potential to generate meaningful revenue in both the short and long-term.
We are not outright against the concept, but as expressed in our Snapshot comments, the proposal lacks research to fully endorse the activation of 2/3/4 bps fee tiers for the ETH/USDC pool.