DPI tokens are held in the DPI Set contract regardless of where the DPI token itself is. We can vote with all DPI underlying tokens whether people are LPing on uni/sushi/balancer, deposited in cream/aave, or even move DPI to L2 on loopring. DPI is an abstraction layer on top of all the underlying tokens we can do whatever we want with the actual AUM.
By having BED on Balancer that means BED token itself is a representation of an LP position. That doesn’t change whether the BED token is intended to be traded. ETH2x-FLI is intended to be traded yet is built on Set Protocol as an example. We are concerned about asset management of the underlying tokens, whatever does that most effectively for the use case is what we should use. The actual token we issue that represents the underlying assets can be used however the holder wishes and isn’t affected by whats going on behind the senes.
My suggestion is we don’t make any fees at all on BED since it’s dead simple and has no IP as DPI does so will be highly competitive. Using Balancer I’m pretty sure we wouldn’t even be able to charge fees on BED directly, only getting fees from DPI within BED. I can deploy BED to Balancer right now with maybe $200 in gas fees and it would run more efficiently and effectively than paying bankless and IC to do it for me. So for any position >$2,000 the cost to enter an LP position on balancer will always be cheaper than the yearly fees paid on BED. As a user, whats the advantage of going with Coop’s BED for less profit and worse performance? I can get paid for better performance or i can pay for worse performance. Choice is pretty obvious