Summary
This is a proposal to reduce the minimum creation amount for the funds. There had been considerable team & community feedback regarding minimum creation amount hindering new and/or smaller users’ interest, as well as being less inclusive of overall community needs. Reducing the minimum creation amount would allow users to join with less inhibition and wallet size, and could serve as an encouragement to new DeFi entrants.
Abstract
As Tranchess expands multichain and onboards new users, making the user experience as smooth and intuitive as possible is essential. A recurring bottleneck some users seem to be running into is the minimum creation amount required, which prevents new users from onboarding into the Tranchess ecosystem and/or freely compounding their positions.
Currently, the minimums sit at around $250-400 USD equivalent with the respective funds.
The initial implementation of the minimum creation size was to prevent users from experiencing losses due to gas fees exceeding creation amounts. Now with improvements in system efficiencies, this implementation is no longer necessary. With additional inflows of users with smaller holdings as well as new DeFi entrants, there is the need to improve the usability and onboarding process for those who seek to transact smaller amounts. As such, the purpose of this proposal is to reduce the entry requirement of Tranchess creation and continue building Tranchess towards its vision of expanding DeFi to serve all users, regardless of their holding sizes.
Motivation
A removal or decrease of the minimum creation amount within the Tranchess primary market will improve user experience by allowing new users with less liquidity or users with smaller portfolios to participate within the Tranchess ecosystem. There are three options:
- Complete removal of the minimum creation amount requirement
- 90% decrease of the minimum creation amount requirement
- For example, if previously the minimum creation amount was 0.1 ETH for the eQUEEN fund, now the minimum amount will be decreased to 0.01 ETH
- 70% decrease of the minimum creation amount requirement
With any of the solutions, users would gain greater flexibility in transacting amounts suitable for their personal needs.
For
- Complete Removal of minimum creation amount requirement
- Allows new users with minimal liquidity to onboard into the Tranchess ecosystem, regardless of size
- Existing users can compound holdings freely via weekly emissions
- No barriers for auto-compounders to look at building on top of existing funds
- 90% decrease in minimum creation amount requirement
- Allows new users with less liquidity to onboard into the Tranchess ecosystem. The reduction might not cater to 100% of users since some might transact amounts smaller than the reduced minimum requirement.
- Existing users can compound holdings more frequently via weekly emissions
- Potential for auto-compounders to look at building on top of existing funds
- 70% decrease in minimum creation amount requirement
- Allows new users with less liquidity to onboard into the Tranchess ecosystem whilst keeping gas fees low as an overall percentage.
Against
- Complete Removal of minimum creation amount requirement
- Increased gas fee expenditure from users as a %
- Potential to introduce external user risk from external auto-compounders building on top of Tranchess protocol
- 90% decrease in minimum creation amount requirement
- Increased gas fee expenditure from users as a %
- Potential to introduce external user risk from external auto-compounders building on top of Tranchess protocol
- 70% decrease in minimum creation amount requirement
Better catered towards users with medium/larger wallets and liquidity that are unaffected by reduced minimum creation amounts.
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