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Fees and Gas
Risk Balancer optimises yield in the context of stability and security

Gas optimisation

The Gro protocol is designed to keep fees to a minimum. It has inbuilt mechanisms to automatically drive the investment portfolio into equilibrium to avoid costly portfolio rebalances.
Each transaction is characterised by size as a percentage of TVL. The small transactions (sardines) simply go in or out of the three stablecoin vaults in the same stablecoins and amounts requested by the user. This is the cheapest way to transact. Medium-sized transactions (tunas) get swapped if the deposit is into the most overexposed stablecoin or the withdrawal is from the most underexposed stablecoin. This can be more costly than a sardine transaction if a swap needs to happen. The large transactions (whales) get deposited or withdrawn in a balanced way, from each vault, to keep the system in equilibrium. This is the most costly of the three in gas, since whales effectively execute a rebalance each time they deposit or withdraw funds.
We also keep a small percentage of TVL uninvested in order to allow for withdrawal traffic to have easy, low-cost access to funds and to not have to withdraw from strategies. In the long term, we expect the protocol to be able to handle the vast majority of deposits and withdrawals without needing to swap or withdraw from strategies while still maintaining a state of portfolio equilibrium. As usage goes up, system stability and yields follow suit while user fees go down.

Fees

System Fees

In addition to gas fees, we currently have a 0% performance fee and a 0.5% withdrawal fee (the HODL contribution). The 0% performance fee is a system parameter could be subject to change by governance in the future.

Gas Fees

We have optimised the Gro protocol to minimise user gas costs. Over the long term, the vast majority of deposits and withdrawals should incur minimal gas fees. However, exceptionally large deposits and withdrawals, which could wrench the protocol out of equilibrium, cost more in gas in order to rebalance the system on their way in our out.
Last modified 2mo ago