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