Lending Fees are repelling liquidity and need to be reworked

Hi,

in my opinioin, the fees are repelling liquidity on the DEX, especially lending I vew as broken here.

  1. As was discussed on the “cancellation fee” Thread, the fee of 0.5% of the stack purely for setting up an order and cancelling it is outrageous. Players with liquidity will not start offering Liquidity if they have to pays Tens or Hundreds of USD/Tomo just for cancelling or changing an order. Take 2x,5x or even 10x the Transaction Fees…but 0.5% repelled me from putting up a 10k offer as a lender.

  2. Then I took a look on the borrowing side: If I take a loan, I will pay 0.5% of the complete sum as a fee. Lets look into this with some examples, taking a loan of 1.000USD on a settlement for 5% APY in each:
    Additionally to my 5% APY Settlement, I pay 0,005*1.000 = 5USD on network fees. So in reality, my API will be:

A) 1-Day loan cost: ~0,13USD to the lender, 5,13 in total, for 1 day…=> 187,5% APR (182.5% fees)
B) 7-Day loan cost: ~0,95USD to the lender, 5,95 in total, for 7 days… => 30,94% APR (25.94% fees)
C) 30-Day loan cost: ~6,57USD to the lender, 11,57 in total for 30 days… => 13,88% APR (8.88% fees)
D) 90-Day loan cost: ~12,32USD to the lender, 17,32 in total for 90 days… => 6,928% APR (1.928% fees)

…on 90-Day loan if FINALLY gets “bearable” as the exchange fee only amounts to 1.9% APR then, which is still a huge premium on its own though. I think the numbers of the other durations speak for themselves.

Both of those points are huge repellants for the liquidity of the lending markets and the usage statistics confirm my point, as there has been a total of just 1350USD in the last 24hrs, according to the statistics on dex.tomochian - while the tomo market sits at 0.00.

I am a huge fan of the dex and the lending markets and REALLY want to use them both ways. But with those fees for order management or borrowing funds, I cannot see myself using it as I was completely deterred by them…and as I said, the usage stats seem to prove my point here (especially considering defi being VERY popular right now).

Hope this can be viewed as constructive criticism…please cap the fees to the Transaction Fees…

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Follow-Up idea / proposal to fix the fees for borrowing funds: Add 0.5%+Transaction Costs to the settled APR and take this as the fee.
So in the 1-day-example, the Borrower would pay 5.5% APR and the fee would be 0,013USD (+ X for the Transaction which should be fractions though).

This would be MUCH more interesting to use then.

Regarding the Fees for cancelling orders on the book, I think they just should be reduced to the TX Cost (x2 if relayers need to earn from that…but I think without settled orders there shouldnt be a fee besides the technical cost!)

I think the current fee structure is clear for the lender, borrower.
Lender and borrower do not need to know the transaction fee that Relayer Owner needs to pay for the masternodes.
Lender, borrower just needs to know APR and trading fee when they create the orders.
Currently, Lending’s trading fee is 0, borrower’s trading fee is 0.5% (this fee can be adjusted by Relayer Owner)
Take a look:
https://docs.tomochain.com/tomodex/tomodex-fee/lending-fee
https://docs.tomochain.com/masternode-and-dex/tomox/tomox-p2p-lending

Currently, the cancel fee = 1/10 trading fee. I think that cancellation fee should change to be a flat rate (e.g. 0.0001 TOMO)

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Hello, As a borrower will I get a notification close to my loan term end date?

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Not yet, but we will release that function soon. There will be notification via TomoWallet app. Thank you for the feedback

Hello,

I just noticed some tomo was released automatically by the Recall excess function. It would be good to get notification in tomo wallet for such event also.