Current scale of RAI: Comparison of trade sizes, gas costs, fees, pool sizes
I overview values related to RAI trades.
Is it worth migrating current pools to lower fee pools (RAI-stable 0.05% fee → 0.01% fee, RAI-ETH 0.3% fee → 0.05% fee)?
My current thought is, yes (maybe).
Gas
Assume:
- 200k — 300k gas per swap per pool
- Gas price: 10–30 gwei
- ETH price: $1k — 2k
Then, a swap costs $2–18.
This corresponds to
- 0.3% of $0.7k —6k
- 0.1% of $2k — 18k
- 0.05% of $4k–36k
- 0.01% of $20 k — 180k
Pool Size and Price Impact
RAI-stable pools
Uniswap v3 RAI-DAI 0.05% fee
- Pool size: $2.3m
- 0.05% impact trade: $350k
- 0.01% impact trade: $70k
Curve RAI-3CRV 0.04% fee
- Pool size: $2.9m
- 0.05% impact trade: $70k
- 0.01% impact trade: $15k
Trade size, gas cost, trade fee, price impact (slippage)
- Trade size < $10k: The gas cost is dominant.
- Trade size $10k — 50k: The gas cost and the 0.05% fee are comparable.
- Trade size $50k — 100k: The 0.05% fee is dominant. (The 0.01% fee, the gas cost, and the slippage are comparable.)
- Trade size $100k — 300k: The 0.05% fee is dominant. (If the fee is 0.01%, the slippage is dominant.)
- Trade size >$300k: The slippage is dominant.
RAI-ETH pool
Uniswap v2 RAI-ETH 0.3% fee
- Pool size: $2.9m
- 0.3% impact trade: $4k
- 0.1% impact trade: $1.5k
- 0.05% impact trade: $0.7k
Trade size, gas cost, trade fee, price impact (slippage)
- Trade size < $1k: The gas cost is dominant.
- Trade size $1k — 5k: The gas cost, the fee, and the slippage are comparable.
- Trade size >$5k: The slippage is dominant.
If Uni v2 RAI-ETH is moved to Uni v3 RAI-ETH
Assuming the same pool size and a mean concentration factor of 3x, price impacts and trade sizes will be:
- 0.3% impact trade: $12k
- 0.1% impact trade: $4.5k
- 0.05% impact trade: $2.1k
Trade size, gas cost, trade fee, price impact (slippage)
- Trade size < $1k: The gas cost is dominant.
- Trade size $1k — 2k: The gas cost and the 0.3% fee are comparable. (If the fee is 0.05%, the gas cost is dominant.)
- Trade size $2k — 4k: The 0.3% fee is dominant. (If the fee is 0.05%, the gas cost and the slippage are comparable.)
- Trade size $4k — 10k: The 0.3% fee and the slippage are comparable. (If the fee is 0.05%, the slippage is dominant.)
- Trade size >$10k: The slippage is dominant.
Appendix
Trade simulation snapshots on 2022 Oct. 20.
