CP120: Fix incorrect Protocol Fees for Anemoy DeFi Yield Fund 1

[ImdioR]

cp: 120
title: Fix incorrect Protocol Fees for Anemoy DeFi Yield Fund 1
author: Jay
contributors: Orhan, Imdior
uses-component: CP4
technical-proposal: yes
requires-onchain: yes
impacts/modifies: -
status: rejected
date-proposed: 2024-17-07
date-ended: 2024-23-07

Short Summary

This proposal aims to fix incorrect Protocol Fees that were set during the onboarding of the pool

High level objective

The objective of this proposal is to set the correct value of 7.5bp of Protocol Fees.

Background

The CP110: (POP) Anemoy DeFi Yield Fund 1 was approved by Centrifuge token holders on the date 2024-05-27.
The Protocol Fees were set, incorrectly, to 40 bps ( 0.400% of NAV ) during the deployment of the pool.

Unfortunately, changing the value of the Protocol Fees is not immediately possible. The Protocol Fees rates can not be changed via extrinsic call and can be only removed and added again with the desired new rate after.

This CP aims to remove the incorrect value of Protocol Fees and set the correct value of 7.5 bp of Protocol Fees for Anemoy DeFi Yield Fund 1.

Given the urgency of this proposal, the voting period for the referendum will be 7,200 blocks (24 hours).

Alignment to the mission of Centrifuge DAO

The correct fee value is crucial for running the Anemoy DYF Pool and onboarding new investors, which has a crucial impact on the financial stability of the CFG Protocol.

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The proposal was submitted on Github as CP120

Governance process for this proposal

1. Council Motion + fast-track
2. Referendum vote open for 7200 blocks (~24 hours)
3. If the referendum passes, the upgrade will be authorized immediately after and can be enacted

[ImdioR]

1. Preimage note call

0x45002872020400000000000000

2. Preimage hex ( was already registered n)
   0x168b0f21fde357552a06c0dfee595ced9b23d5202eaaa8a6352b300899f1a75a
   
   

Call hex for submitting a batch of Council Motion+ fast track (7200 blocks) voting time which can be called by Council Member:

0x4002143e0208420502168b0f21fde357552a06c0dfee595ced9b23d5202eaaa8a6352b300899f1a75a0a0000004207168b0f21fde357552a06c0dfee595ced9b23d5202eaaa8a6352b300899f1a75a201c0000000000000901

You can just copy the call hex and insert it here: Polkadot/Substrate Portal and click Submission and sign!

[mikiquantum]

Submitted for Council vote: https://centrifuge.subscan.io/council/99

[Rhano]

Councillors, please vote on Council Motion 99.

Vote in the portal: CP120: Fix incorrect Protocol Fees for Anemoy DeFi Yield Fund 1

or

Vote on SubSquare: CP120: Fix incorrect Protocol Fees for Anemoy DeFi Yield Fund 1

If passed in the council, this will become Referendum 61 for all CFG token holders to vote on.

The referendum vote will be open for 7,200 blocks (24 hours) and fast-tracked.

@lucasvo @cassidy @thespaceacatjr @prankstr25 @Ash @Yarosl6 @vedhavyas

[lucasvo]

I voted no on this motion. DYF doesn’t fit into the fee categories we have but saying it’s supposed to be 7.5bps which is for pools with the underlying assets being public securities is as wrong as saying it’s private credit. Technically it’s a fund of fund with the underlying assets being private fund investments. I think instead of changing from one ill-fitting category to another we should revisit the overall pricing structure and come up with something that makes more sense.

[Rhano]

Council Motion 99 expired with 3/5 councillors voting Aye and one councillor voting Nay.

However, since the Prime Voter voted Aye in the motion it has now passed in the council and become Referendum 61 for all CFG token holders to vote on.

The referendum is now open for 7,200 blocks (~24 hours).

Please vote here: CP120: Fix incorrect Protocol Fees for Anemoy DeFi Yield Fund 1

Please vote on the referendum.

[Rhano]

Referendum 61 did not pass the onchain vote.

CP120: Fix incorrect Protocol Fees for Anemoy DeFi Yield Fund 1 was rejected.