Count rebalance losses in performance fee

My account has no permissions to create proposals in the “General proposals” sections, so I’m posting here.
As i mentioned on discord, performance of some pools isn’t great. For e.g. i got a loss on WBTC\ETH 0.3% pool for LPing for 31 days in terms of both WBTC and ETH.
Also i found a great proposal here
for including re-balance permanent losses in fee calculations, because it’s wrong when protocol generating losses and charges fee for it.
What do you think about it?

I don’t think reducing the fee % should be an option.
Part of adding TVL to PLPs is trusting Popsicle’s mechanism and the team is very clear about making sure PLPers are aware it is a long-term play.

But in saying that - I wouldn’t mind hearing about ideas for calculating fees via a Time averaged profit model, which wouldn’t be a perfect “refund” if IL becomes permanent (As I said above, I don’t think expecting a refund is reasonable) but an averaged model may work out to be more fair for PLPers.
And still encourage the team and community members to model rebalancing mechanisms to minimise this loss.

Even if it was simply calculated - 20/10% of total profit since last buyback.

For me, any calculation, which takes into account losses due to re-balance is acceptable. Devs have to be motivated to increase profits for LPers, not only for the protocol, for sustainable future.

1 Like