# IIP-16 Smart Treasury

**URL:** <https://gov.indexcoop.com/t/iip-16-smart-treasury/935>\
**Category:** Proposal\
**Tags:** IIP\
**Created:** [3 March 2021 05:47 UTC](https://gov.indexcoop.com/t/iip-16-smart-treasury/935 "2021-03-03T05:47:46Z")\
**Posts on this page:** 1\
**Showing post:** 6

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**Author:** ![verto0912](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/verto0912/32/2105_2.png) [@verto0912](https://gov.indexcoop.com/u/verto0912)\
**Post date:** [5 March 2021 10:27 UTC](https://gov.indexcoop.com/t/iip-16-smart-treasury/935/6 "2021-03-05T10:27:19Z")

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Yes, understand. The reason to have a higher fee is to minimise impermanent loss. For example, a fee of say 2.5% or 3% will make sure the pool doesn’t get arbed as much and reduce the IL on it. Might be worth thinking if minimising IL is a valid criteria for the Smart Treasury. But if the goal, to a large extent, is to provide liquidity to the market then 0.3% makes sense 👍

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