Deposit Fee

Similar to withdrawal arbitrage, “Deposit Arbitrage” is harmful to the protocol’s long term financial health. To counter the attacks, we have devised our own withdrawal fees mechanism.

A very small deposit fee is already sufficient to prevent such an attack.

Assume the deposit amount is equal to 1% of the pool:

Cov Ratioo	Deposit Fee
<= 1	-0.0000%
1.1	-0.0017%
1.2	-0.0012%
1.3	-0.0008%
1.4	-0.0006%