KIP-020 Lower Stability Fee to 16%

KIP-19 reached 99.68% of quorum and hence failed. This is a reinjection but this time, as per community suggestion, the stability fee will be lowered more from 20% → 18% to 20% → 16%

kUSD has mostly been above peg following the introduction of the savings rate. Even with the stability fee being lowered to 20%, we still see kUSD sitting at multiple cents above the dollar. Also, as per Trophy Case’s Post, “At this point I believe that our high fees are hurting the protocol more than helping by hurting adoption.”

Please see his post KIP-018 for more arguments regarding why we should continue to lower the stability fee.