Ribbon Finance

Full proposal and discussions can be seen here: https://gov.ribbon.finance/t/rgp-1-ribbon-vaults-fee-recipient/19

Summary

Proposal to Change the feeRecipient of the Ribbon Vaults to the vault address itself, so that people who remain in the vaults will benefit from people who withdraw from the vault.

Background

Currently, the Ribbon vaults have a 0.5% exit fee. When depositors withdraw from the vault, this fee gets charged and gets sent to the vault’s feeRecipient address. This feeRecipient is a variable that can be changed to any arbitrary address, including the vault address itself.

If the feeRecipient variable is set to the vault’s own address, this exit fee will be distributed between users who remain in the vault. This incentivizes users to remain in the vault for longer periods of time.

Abstract

I propose two changes:

1. Set the feeRecipient of Ribbon’s 3 vaults (ETH Covered Call, WBTC Covered Call, ETH Put Selling) to their own respective vault addresses.

2. Distribute the fees collected so far in the current feeRecipient address to the vaults, as a one-time reward to depositors.

At the time of writing, the current feeRecipient address has collected approximately in fees:

• 23.3 WETH
• 18,900 USDC
• 0.45 WBTC

Assuming that there are no new deposits over the next few days, this one-time distribution will generate an additional yield of:

• ~0.5% to ETH Theta Vault Depositors
• ~0.18% to WBTC Theta Vault Depositors
• ~0.27% to ETH Put Selling Vault Depositors

Specification

To execute this proposal, the Ribbon Manager Multisig will execute the following transactions:

Change Fee Recipient:

• Call the setFeeRecipient function for the ETH Theta Vault with the newFeeRecipient as 0x0FABaF48Bbf864a3947bdd0Ba9d764791a60467A.
• Call the setFeeRecipient function for the WBTC Theta Vault with the newFeeRecipient as 0x8b5876f5B0Bf64056A89Aa7e97511644758c3E8c.
• Call the setFeeRecipient function for the ETH Put Selling Vault with the newFeeRecipient as 0x16772a7f4a3ca291C21B8AcE76F9332dDFfbb5Ef.

Distribute Fees:

• transfer all WETH balance from 0x6adEB4FDdB63F08E03d6f5b9f653bE8b65341B35 to ETH Theta Vault
• transfer all WBTC balance from 0x6adEB4FDdB63F08E03d6f5b9f653bE8b65341B35 to WBTC Theta Vault
• transfer all USDC balance from 0x6adEB4FDdB63F08E03d6f5b9f653bE8b65341B35 to ETH Put Selling Vault