hope the forum can get alive again. It has been quite creative and important before.
Anyway, I was just wondering whether additional “use case” of PHX could be using it for paying the options fees. At this point, the fees are in USDC and USDT and they will likely get burned after some amount is accumulated. This is certainly a good thing. However, crypto community just loves burning, doesn’t it? So what about an option to pay the fees in PHX with some discount? The current fee is 5%, so maybe 2.5%? And the fee would either directly be burned (there could be an additional info in Options Pools where we now have “Undistributed Fees”; there could be “Accumulated fees in USDT/USDC this month” and “Burned fees in PHX” or something similar) or accumulated and then burned. The same thing could be done for leveraged tokens, of course. At this point, these are tiny amounts but it can (hopefully will) change in time. But the message is clear.
To sum up:
The current situation:
- When the option is purchased, there is an additional 5% on the top of the price based on the internal formula (Black-Scholes model in the Phoenix Finance case, here). This fee is in USDT/USDC as these are used for buying the option. The fees are accumulated in the contract. Historically, these were used for a “buyback and burn” rather than being redistributed among the pool participants.
- Allow paying fees in PHX with a discount (e.g. 2.5%) and the fee would be either directly burned or accumulated and these accumulated PHX fees would be burned on a regular basis (e.g. monthly). The monthly burn is likely better also for marketing purposes.