Post 4 — @vires-in-numeris

Created: 2025-12-06T03:18:48.738Z

Hey Arrakis team, thanks for the proposal.

Personally, I think the 50% performance fee is a bit high considering that Livepeer will fully cover any IL. In theory, Arrakis could set a really thight range to maximizes the fees but also the IL. Are there any guardrails regarding this?

Have you done any backtesting for your strategy? E.g. for past years LPT/ETH performance. This would give us at least some data on the expected IL vs fees.

Also, why the 0.3% pool and not the 1% pool? Given that this pool will be the only DEX liquidity and LPT/ETH is quite volatile, the generated fees would probably be a lot higher. So the performance fee could be dropped to e.g. 20% and Arrakis should still get roughly the same amount.