This is indeed a good option, but in my opinion we shouldn’t stop here.
I’m not really a fan of coining the 25% of Bal that is used to mint veBal as a “performance fee”. It’s not; Aura is not a yield optimizer or aggregator. Rather, we’re slowly exchanging Aura against veBal, at rate of 14.4 Aura per Bal acquired. Aura is not a charity aiming a relieving distressed farmers in need of a good yield.
On the long run, this slow grind is the biggest driver for Aura’s dominance over the Balancer governance. Aura’s emissions are widely too high for the amount of Bal it gets, and as a result, it’s not possible to follow a sustainable path for it, or start a flywheel. We don’t acquire enough veBal to counter the dilution, and the only strategic move is to sell the yield, which further reduces the incentives – a loop of death is forming.
Increasing the fees would at least slow down the dilution, and put all of this value to a good use. No one in the competition is incentivizing as we do, even with larger fees, so it’s not really a danger. The same goes with bribes: the dilution and Aura price is the main driver for their decrease over time. We shouldn’t release the prey for the shade and continue on building a strong foundation.
Think about it this way: by doubling the fees, we can keep on the current accumulation while having only 50% of the current TVL, and half the Aura emissions. Of course, we’ll have more than 50% of the current TVL, so overall the protocol will gain much more than it may lose. We have enough room for increasing the fee: we need to do it.
Otherwise, Aura’s price will converge toward 1/4th of its current value, which is equal to the fees it is exchanged against.
As for the autocompounder, llama.airforce does it already. It’s not a silver bullet, and it won’t solve the accumulation/dillution problem.