This proposal seeks approval for a protocol fee holiday for the upcoming launch of the tfBILL product.
We believe hosting a scalable, liquid, low-risk strategy like tfBILL will benefit the liquidity and success of all current and future vaults on TrueFi, and given the magnitude of its strategic importance, we are seeking a reduction of the standard 0.50% protocol fee to 0.20% along with a 90 day fee holiday. This change will not affect existing products.
Adapt3r Digital, a forward-thinking asset manager, is seeking to make the tfBILL product central to the TrueFi ecosystem. In the last six months, tokenized treasury bill products have become a highly competitive space. Below is a list of the fees and fee structures of top on-chain treasury bill products on the market today:
Source: Steakhouse Financial, RWA.xyz
We believe it to be prudent to use reduced fees as one way to promote tfBILL and give the product the best chance of attracting investors in this newly competitive landscape.
Specification and Requirements:
Waive the protocol fee for tfBILL for the first 90 days and reduce protocol fee to 0.20% indefinitely.
Facilitates the addition of the following to the TrueFi platform:
- Integration of the tfBILL product, making it a key piece of the TrueFi ecosystem and giving it the best chance for success.
- At least $10MM of new investment capital.
- Potentially set a precedent for investors to seek lower fees.
- “Yes” - Change the protocol fee for the tfBILL integration to 0.20% and grant 90 day fee holiday.
- “No” - Do not change, which would put at risk the feasibility of integrating tfBILL into TrueFi.