@Aaronadamczyk I am with you on this. Definitely a valid

Question

@Aaronadamczyk I am with you on this. Definitely a valid

critic of the treasury's liquidation mechanisms. Users should be notified somehow of liquidation getting close and should definitely be informed better when changes such as the grace period occur.

Still regarding the treasury, there's something else that I think is misleading.

I'll use my deposit to illustrate it:

I locked 200k COTI for 30 days with a x2 multiplier a month ago. I payed 1017 COTI as fees to make the deposit. After 1 month, That deposit earned ~3650 COTI and if I were to withdraw the funds now, I'd have to pay 1070 COTI as fees. Am I the only that sees a problem with this?

I know the APY is dynamic but let's imagine it had been 15% all month long (on average, it was above 15%), that would still bag me 2500 COTI in a month. But the combined fees to deposit and withdraw these funds are 2087 COTI... Which means I'd have netted 413 COTI, or ~ 6% APY, when the advertised APY is min 15% here.

Still no problem for anyone?

I know I don't HAVE to withdraw my funds now that the lock period is over, but not doing so is still exposing my deposit to a liquidation risk.
And I know the APY depends on those fees too but this is kind of an obscur scheme in my opinion. At least it is wrongly advertised..

Any thoughts?

#coti #cryptocurrency #english

0

05.03.2022

13 ответов

8 просмотров

Marin Автор вопроса

Mário São João
After the deposit ends you don't have to pay nothi...

I hoped so (I thought a deposit would automatically be terminated once its lock period would be over) but instead, my deposit is now considered an "unlocked x2" deposit and continues earning with the corresponding APY and still requires fees to withdraw the funds

0

05.03.2022

Ben G | COTI | Will never DM you first!

Mário São João
After the deposit ends you don't have to pay nothi...

There's a withdrawal fee of 0.7%

0

05.03.2022

Danny Eng 🇸🇬

Marin
I hoped so (I thought a deposit would automaticall...

So the treasury is actually beneficial towards long term staking with 1x multiplier.

0

05.03.2022

Marin Автор вопроса

Danny Eng 🇸🇬
So the treasury is actually beneficial towards lo...

So I understand it as well. My strat was to expose myself to a liquidation risk during 30 days only and reevaluate from there. I thought the deposit would last as long as the lock up period, not that only the lock was temporary. This is probably on me although I read the docs before using the treasury

0

05.03.2022

Danny Eng 🇸🇬

Marin
So I understand it as well. My strat was to expos...

Yeah, I think the deposit should be changed automatically to x1 and unlocked after the lock up period ends

0

05.03.2022

Marin Автор вопроса

Danny Eng 🇸🇬
Yeah, I think the deposit should be changed automa...

That would be fairer imo

0

05.03.2022

Danny Eng 🇸🇬

Marin
That would be fairer imo

@shahafbg

0

06.03.2022

Danny Eng 🇸🇬

Danny Eng 🇸🇬
Yeah, I think the deposit should be changed automa...

Can you pass it down to the team?

0

06.03.2022

Danny Eng 🇸🇬

Danny Eng 🇸🇬
Can you pass it down to the team?

@musthaveben @VOvadenko @shahafbg

0

06.03.2022

Ben G | COTI | Will never DM you first!

Danny Eng 🇸🇬
Can you pass it down to the team?

https://forms.gle/kYAYeMXA49tinyjb6 Suggestion form

0

06.03.2022

Danny Eng 🇸🇬

Ben G | COTI | Will never DM you first!
https://forms.gle/kYAYeMXA49tinyjb6 Suggestion for...

Ok done

0

06.03.2022

Azak

Very true, unfortunately this is a common issue on many different tokenomics around the crypto space. The high fees to deposit and withdraw almost off set any gains, it's disapointing. If you could leave it and extend the locked period no problem. I had the same issue with Parabus, erc token yes, but fees to stake and unstake were more than my return would have been, had to wait until fees dropped. But what if I had to unstake and fees had increased? not great

0

06.03.2022

Mário São João · Accepted Answer

Mário São João

After the deposit ends you don't have to pay nothing to withdraw, right?

0

05.03.2022

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@Aaronadamczyk I am with you on this. Definitely a valid

13 ответов

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