Since launching in January, our Diversified Staked ETH Index ($dsETH), has seen limited adoption in the market, as can be seen on the dsETH dune dashboard.
Index Coop is considering dropping the 0.25% streaming fee on dsETH to zero to strengthen dsETH’s position as an LST collateral and improve the value proposition to fee sensitive users.
If you have strong thoughts on the matter, please reply to this forum post with your opinion & reasoning on removing the streaming fee on dsETH.
Taking into consideration the limited adoption we’ve witnessed since its launch, I believe it would be in our best interest to drop the 0.25% streaming fee for the following reasons:
Improved Value Proposition: The cryptocurrency market is extremely competitive, and many investors are fee-sensitive. Removing the streaming fee can greatly enhance the attractiveness of dsETH to a broader range of users, especially those deterred by even small fees.
Increased Adoption: While the current adoption rate has been underwhelming, we have a chance to reset the narrative. By dropping the fee, we may generate increased buzz and interest in the product, leading to greater user adoption and more integration into other protocols.
Strengthening as an LST Collateral: LST collateral requires strong backing and market trust. By positioning dsETH as a public good, we not only improve its standing but also ensure its desirability as a trusted collateral in the ecosystem.
Community Engagement & Positive Perception: This move can be seen as an act of goodwill towards the community. In an era where trust and community engagement play a pivotal role, removing the fee can reinforce our commitment to the user base and foster a more positive perception of our offerings.
Potential for Other Revenue Streams: By eliminating the upfront fee, we may see increased usage which can open doors for other potential revenue streams in the future, such as partnerships or integrations with other platforms.
In conclusion, while there’s an obvious, but minor, short-term financial concession in dropping the fee, I believe the potential long-term benefits outweigh the immediate losses. It’s an opportunity to prioritize the growth and widespread adoption of dsETH and show our dedication to the community.
