This proposal reduces the swap fee of the DOT–vDOT Stable Swap pool (Pool 0) on Bifrost Polkadot from 0.30% to 0.05% (5 basis points). The new fee applies to both DOT-to-vDOT and vDOT-to-DOT swaps.

The objective is to lower conversion costs and improve the trading experience for users exchanging DOT and vDOT through this pool. The reduction is 25 basis points, or approximately 83.33% relative to the current rate. All else being equal, fee revenue per unit of trading volume will decrease. Any increase in trading activity and its effect on total fee revenue will need to be assessed after implementation.

The proposal executes:

stablePool.modifyFees(
  poolId = 0,
  mintFee = None,
  swapFee = Some(5000000),
  redeemFee = None
)

The on-chain fee denominator is 10,000,000,000, so 5,000,000 / 10,000,000,000 = 0.05%.

Only the swap fee of Pool 0 is updated. Liquidity addition and removal fees, amplification parameters, fee recipients, asset configuration, other pools, and vToken minting and redemption fees remain unchanged. The new fee takes effect upon successful execution of the governance call and does not apply retroactively.

calldata: 0x8107000000000001404b4c0000000000000000000000000000