HIP-14: Reduce Trading Fees during Horizon Futures Promotional Period

Reduce maker/taker fees by up to 1 and 2 bps respectively and subsidize order execution keeper fees during the Horizon Futures promotional period.

Type: Horizon Improvement Proposal Date: June 14th, 2024 Status: Completed

Summary

This HIP proposes to reduce maker trading fees and subsidize keeper fees to stimulate participation and engagement during the Horizon Futures promotional period. This initiative aims to reduce barriers to entry for traders, encouraging heightened activity and exploration of the platform's features. BTC, ETH, and BNB markets will be available at the initial launch of Horizon Futures. This HIP will apply to these markets and any new markets deployed during the promotional period. Lower fees will bolster platform's attractiveness to both new and existing users, fostering growth of the trading environment while gathering essential feedback for continuous improvement.

Specification

• Call the setMakerFeeOffchainDelayedOrder function in the PerpsV2MarketSettings contract and reduce maker fees for all markets on Horizon Futures by up to 1 bps during the promotional period.

• Call the setTakerFeeOffchainDelayedOrder function in the PerpsV2MarketSettings contract and reduce taker fees for all markets on Horizon Futures by up to 2 bps during the promotional period.

• Call the setMinKeeperFee function in the PerpsV2MarketSettings contract and set it to 0.

• Completely subsidize the costs of the order execution keepers with the community fund.

Motivation

The primary motivation behind this proposal is to drive user acquisition, increase trading volume, and gather valuable insights for platform enhancement. By reducing cost barriers and incentivizing traders, we anticipate increased user participation, resulting in a more liquid and vibrant trading ecosystem. Furthermore, combining this incentives with special activities like trading competitions will serve as an opportunity to solicit feedback from active traders, enabling us to identify pain points, address user needs, and continue to refine our platform offerings for an optimal user experience and competitiveness

Considerations

• Impact on Stakers: During the promotional period, stakers will earn less trading fee rewards typically earned from trading volume. However, the overarching objective is to attract new traders to the platform, expanding the user base and enhancing the ecosystem's overall value proposition. Stakers stand to benefit from a larger and more active trading community, which could translate into greater future trading fees and a more robust and sustainable token economy.

• Post-Competition Evaluation: Upon the promotional period conclusion, a comprehensive evaluation will be conducted to assess the initiative's efficacy and impact. Key metrics such as user acquisition, trading volume, and user feedback, will be analyzed to inform future decision-making and strategy formulation. Insights gleaned from the evaluation process will guide ongoing efforts to refine platform features, optimize user experience, and sustain long-term growth and competitiveness.

Feedback & Questions

If you have any suggestions, concerns, or inquiries regarding this proposal, please don't hesitate to reach out.