Deposit Fee
Similar to withdrawal arbitrage, “Deposit Arbitrage” is harmful to the protocol’s long term financial health. To counter the attacks, there is a custom deposit fees mechanism.
A very small deposit fee is already sufficient to prevent such an attack.
Assume the deposit amount is equal to 1% of the pool:
Cov Ratio
Deposit Fee
<= 1
-0.0000%
1.1
-0.0017%
1.2
-0.0012%
1.3
-0.0008%
1.4
-0.0006%
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