The current youves engines all have an initial minting fee of 1.56%. There are various reasons why that is:
- minters receive YOU rewards for their activity and should in return support the protocol. The ROI (received YOU vs. fee) is less than 6 weeks.
- from a security perspective we did not want to have a situation where a drain attack would be possible, that’s why by having a “spread” repeated calls wouldn’t be feasible.
- we wanted to increase stickiness because now users had to always decide whether they want to burn (and then later on pay again the minting fee) or simply stay in the protocol.
I believe that many of the benefits in the minting fee have been proven, however the drawback is that short-term loans are disincentivized. It’s currently unfeasible to get a loan to get leverage for a day and pay it back the day after.
The question is “is that short-term behaviour something we want to support as a protocol or not?”
Let me know your thoughts.