Trading Gas Fee Accounting in Fund
complete
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Wes Cowan
Currently the gas fees for all trades are paid by the fund owners wallet (not by the funds assets). This obviously creates an issue as fund owners should not be personally paying the fees outside of the fund. At a minimum it should deduct the fees from the NAV and create a balance to reimburse the manager.
Mona El Isa
complete
It will be possible to expense gas to the vault with Sulu release next week!
S
Sean Davis
This is a HUGE issue for some of us, as well as another related issue. I deposited USDC into a fund= $400 gas fee with gas about 75. When I withdrew, the gas fee was $800, partially because the fund paid to me 15+ different tokens, instead of all USDC!!! So now how much gas do I have to spend trading all those tokens into something I want? If it's USDC in, it should be USDC out. And what is Canny? Why do we have to sign up for that just to be able to post here? Why does it need our data? It won't allow me to sign up with simple email, only Twitter/Facebook where it can harvest all my data.
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DieselDog
DeepCryptoDive Mona El Isa Do you have an update with approximate ETA for when this change will be made?
We just launched a fund on Enzyme vault and were quite surprised and disappointed when we discovered the manager personally needs to pay gas fees.
As others have said, the gas fees will totally eat up nearly all the performance profits a manager makes on a small fund.
We were initially quite excited to get up and running on Enzyme, but it is impossible to be enthusiastic about it until this issue is resolved.
Please, please prioritize this issue!
Thank you.
Ignacio Rodriguez
DieselDog: This will be addressed in our next release (Sulu - Q4) there will be an opt-in feature for the vault to paid the gas if the manager deems so.
DeepCryptoDive
planned
Added onto the roadmap!
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Jelle Arts
At the moment gas prices are high, which makes active management on a small fund not very attractive.
On the other hand, a fund manager has the option to charge a management fee. As the name would imply, this is a fee to cover the costs of managing the fund.
I realize that no acceptable management fee is currently going to cover expenses, but from an onbjective point of view this should not be a reason to cut into a clients profit margin. Instead, it should lead to a more passive investment strategy.
If this feature was to be implemented, I would strongly suggest that it becomes an optional setting for the manager upon the creation of the fund.
Mona El Isa
in progress
DeepCryptoDive
under review
Indeed, gas prices are an issue as long as L1 & L2 fundamentals do not improve. (e.g. Ethereum scaling & implementation of Layer 2 solutions by Enzyme).
The good news is that the team is actively working on providing remedies for this.
e.g. Enzyme is (partly) subsidising gas for trades that happen via Paraswap during March. More info here: https://medium.com/enzymefinance/enzyme-is-subsidising-gas-for-the-month-of-march-7a327535a207
R
Roland
Totally agree. Making the fund manager pay personally for the fees undermines any motivation to get started. Gas fees are hefty making this concept pretty much unsustainable for both (Investors & Managers) in particular for small funds. On top, the user documentation is misleading in terms of fees since it insinuates that only a small amount of ETH is required to perform fund inception.
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Jelle Arts
Roland: which is technically true, but this translates to quite the sum of $ these days
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DieselDog
Jelle Arts: I think that Roland means that the Enyzme docs ONLY mention fes required for fund setup, but not for actually gas fees in trades.