feat: Extend Protocol Fee Model with Fixed Operational Fee and Netting-Based Fee Capture

[matteoettam09]

Proposal: Extend Protocol Fee Model with Fixed Operational Fee and Netting-Based Fee Capture

Context

The current protocol fee model can consist of:

• Revenue share fee
• Volume fee

Both components scale with TVL, either directly or indirectly.

While this is industry standard, we proposes exploring additional protocol-level fee components that better align with operational costs and value created by the protocol’s portfolio management infrastructure.

---

Proposal

1. Fixed Rebalance Fee (Operational Fee)

Introduce a small fixed protocol fee parameter that is charged every time a rebalance is executed, independent of TVL.

• Rebalancing incurs operational costs (infrastructure, off-chain computation, gas..).
• A fixed fee better aligns with these costs than TVL-based fees.

---

2. Netting-Based Fee Capture from Reduced Market Impact

Revisit netting mechanisms, especially in the context of off-chain ISO.

Because of coincidence of wants within the protocol:

• Orders are netted internally
• Aggregate market impact is reduced for participants using the portfolio management infrastructure

The protocol could capture a fraction of the market impact savings generated by this netting.

Notes:

• This fee would likely be 0 for vaults
• It can be non-trivial for AMM pools, where coordinated flows meaningfully reduce external slippage
• The captured amount represents value created by the protocol.

---

Open Questions

• How should market impact savings be estimated and attributed?