Tiered fee scheme for perpetuals & fee changes

As discussed over the past few weeks on multiple dev meetups, we are going to be proposing a new feature which allows for tiered fees, the first iteration of this took quite some time to build and test, similarly to the current system which is a single tier setup (5 bps taker fee becomes 4 bps if you hold 10k MNGO).

Part of the reasoning behind adding a second tier is to keep the referral scheme at 10k MNGO and then a new tier whereby aggressive takers need to hold a significantly larger amount of MNGO to retain their fee benefits. As the DAO, when traders are paying less, the DAO’s revenue is decreased but this isn’t vanilla as volume has its pros and cons with regards to attracting new users to Mango. The tiering system is not novel but feedback from various DAO members indicated that perhaps the MNGO amount for the top tier is too low or too high, so we propose a trial whereby the results will indicate the next steps.

The new proposal is as follows:

Maker (base tier): -0.0125%

Taker (base tier): 0.0325%
Taker (tier 1): 0.0310%
Taker (tier 2): 0.0225%

MNGO requirements:

Base tier: 0
tier 1: 10,000
tier 2: 250,000

With this proposal, Mango perps will have a top tier fee more competitive than majority of the venues globally (on Solana & in the CEFI space), we’re mostly interested to see if this attracts new traders to grow the Mango Markets ecosystem.

There will be scope for running a tiered maker fee trial as well.