Executive summary
This proposal seeks DAO permission to refund all protocol fees to the users of Boost for the period of July 20-25th, totaling 5.38241 osETH.
The intention of the refund is to soothe the profitability of Boost during the period of extraordinarily high borrow rates on Aave.
The refund would apply to Boost users in all Vaults, and would be distributed via the Merkle Distributor, allowing each user to claim it when convenient through the StakeWise UI.
Should this proposal fail, the team will have used own funds to process the refund.
Motivation
The spikes in the ETH borrow rate on Aave continued beyond 20th, having come back down from July 25th.
With Boost APY overly negative for a few days, we would like to continue supporting Boost users through the volatile period, proposing a refund of protocol osETH fees paid between July 20th and 25th.
This initiative should lead to a surplus of up to 0.15% APY per loop, or up to 2.1% APY total for Boost users. While it falls short of the negative APYs experienced on some days, it is nevertheless real money that goes back to wallets.
The refund is already available as a fast action from the team. Should the DAO support the decision to refund, the full amount (5.38241 osETH) would be refunded to the team’s wallet from the DAO Treasury.
Considerations
There are arguments to be made on both sides for whether a refund is the right thing to do. As originators of the proposal, we believe that a protocol fee refund would signal DAO’s commitment to giving our best in every product we release and invite users to use.
Vote
SWISE holders - please signal your support or opposition to this proposal via the Snapshot vote: Snapshot