[PROPOSAL] Raise USDH - USDC LP Fee

[dawidsnyders]

Summary

This is a proposal from the Hubble Protocol team to raise the Saber USDH - USDC LP Fee from 0.001% (0.1bp) to 0.04% (4bp).

Motivation

The primary reason for doing so is to ensure that the liquidity providers for the pool earns a sustainable yield, so they continue to provide liquidity, and continue to facilitate TVL and volume for Saber.

At present, the USDH - USDC Pool has a $816,343 TVL with $342,808 24h volume, delivering a 0.15339% APY.

This implies a yearly fee income of $1,252 for the entire pool, with a fee set to 0.001%.

Assuming that volume remains consistent after a fee raise, increasing fees by 40x to 0.04 translates to a 6.1356% APY.

A balance needs to be struck between providing a good user experience, and protocol sustainability. Having virtually no fees on a pool may facilitate volume, but ultimately it delivers almost no value to Saber itself, nor to users who provide liquidity to Saber.

Even a trading volume decrease will still leave Saber, and USDH LP providers earning more fees than at present. Saber is a strategic liquidity venue for USDH, and will continue to be incentivized by emissions due to Hubble's SBR treasury votes, in order to continue to boost pool attractiveness & TVL.

Hubble aims to deliver value to USDH holders, and the USDH-USDC Saber Pool is a key area for doing so. Raising the fee will play a significant part in adding value to users, as well as Saber itself.