Significantly larger liquidation fee for the protocol?

15bps fee for liquidations make sense right now. But in the future, $ovl could potentially be staked, and to that end, it would be great to reward those securing the value of the protocol with a profit share from liquidation.

Perhaps the incentives are different than other liquidation-reliant protocols like maker and compound, would love to hear the thinking on what this fee should be set at? Is 20% crazy considering liquidators are still pocketing everything minus gas fees?


Completely agree here in terms of liquidations going to those supporting the protocol. 15-30bps suggestion was more for the trading fee itself, but we should likely use maintenance margin requirements to our advantage here for liquidations. Maybe something along the lines of traditional CEX levels?

Ultimately that maintenance margin would be good to pass to liquidity providers and maybe community treasury upon liquidating.