Withdrawal Fee

Withdrawal Arbitrage” is able to drain fund from the pool and is harmful to the protocol’s long term financial health. To counter the attacks, there is a custom withdrawal fees mechanism.
In most cases, however, a very small withdrawal fee is already sufficient to prevent such an attack.
Assume the withdrawal amount is equal to 1% of the pool:
Cov Ratio
Withdrawal Fee
>= 1
You can learn more about withdrawal arbitrage and the design on withdrawal fee here.