Confused by this. If you have fees of 4bps taker/0bps maker bps and you move to 5/-1, you didn't actually give a subsidy to makers, you just created a minimum spread of 2bps
cc @RaydiumProtocolpic.twitter.com/Ge0H588IOi
-
So naively I’d say moving from 4/0 to 5/-1 is worth it if spreads are currently > 2bps as it will make markets look tighter. But if spreads are currently < 2bps not worth it as it will cause volumes to drop.
Note that big maker rebates create weird situations when a maker should move their quote to prevent arb vs another exchange (but doesn’t) and no taker will remove the liquidity because taker fees are high, so the arb persists.
