# Proposal to Compensate Bill Broker LPs for Impermanent Loss During Fee Curve Transition **URL:** \ **Category:** Ampleforth Governance\ **Created:** [July 12, 2025, 9:35pm UTC](https://forum.ampleforth.org/t/proposal-to-compensate-bill-broker-lps-for-impermanent-loss-during-fee-curve-transition/863 "2025-07-12T21:35:56Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![Brandon](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.ampleforth.org/brandon/32/301_2.png) [@Brandon](https://forum.ampleforth.org/u/Brandon)\ **Post date:** [July 12, 2025, 9:35pm UTC](https://forum.ampleforth.org/t/proposal-to-compensate-bill-broker-lps-for-impermanent-loss-during-fee-curve-transition/863/1 "2025-07-12T21:35:56Z")
# Background The DAO recently voted to [update the Bill Broker logic](https://forum.ampleforth.org/t/spot-v5-0-upgrade/855#p-2282-h-5-bill-broker-support-for-negative-fees-5) with a new price curve structure. The old fee curves were flat at the tails: ![image](https://canada1.discourse-cdn.com/flex030/uploads/governance1/original/1X/a01c2bb946005e6338bb75a5fc4216dec4902cb3.png) While the new fee curves approach each other at the tails: ![image](https://canada1.discourse-cdn.com/flex030/uploads/governance1/original/1X/fcb4e364109fc745ef26db728b8b4712d9c71315.png) The upside of the new structure is that it allows the Bill Broker to remain in the market conducting trades for longer rather than sitting on the sidelines for sometimes extended periods of time. The downside is that these negative fees at the tails can lead to impermanent loss, as one would see in typical AMMs. This occurrence was especially impactful at this instance because the Broker walked to an asset ratio with one curve, then immediately walked back using the different curve and different pricing structure. When the logic updates were deployed, the asset ratio was far away from 1.0, which led to a near instant arbitrage against other markets by flash bots agents. This (rather impressive) transaction executed in the very next block, 12 seconds later, and can be seen [here](https://eigenphi.io/mev/eigentx/0xefa14592f2281b3501c13ea03c55da73196d086a302daf3f0d0cb1e718fb6581). Accounting for the profit and fee to the builder, there was a total profit of $34,030.35026. Interestingly, most of this went to the [block builder](https://0x6Adb3baB5730852eB53987EA89D8e8f16393C200). # Compensation I propose doing a one-time compensation to the Bill Broker LPs at the time of the asset rebalance after the update occurred. The LP addresses and BB-LP note balances at the time were: | Rank | Address | Quantity | Percentage | | --- | --- | --- | --- | | 1 | 0x190f13321c37c3124e73ca530680e6b97bf930ec | 26,345,355,690.08 | 30.39% | | 2 | 0xcb7e8cbbbd45f66efd699a538a67bf8c0e5f0636 | 20,362,096,737.29 | 23.49% | | 3 | 0x62336d8a9651795de47aabd3aa22f2dc68d21072 | 12,279,513,029.83 | 14.17% | | 4 | 0x270c71a312210d0dc87d5f43d5d10840599c8938 | 9,882,938,145.30 | 11.40% | | 5 | 0x814611f0eb8c0befb5b6892ca836e51784e9b9b4 | 8,968,083,246.23 | 10.35% | | 6 | 0x4c37700d949db46aa11a9f1627070f9af31f8011 | 2,945,009,759.30 | 3.40% | | 7 | 0xe683c0751eacee3e6c4446bfa509413f2fb680dc | 2,200,000,000 | 2.54% | | 8 | 0xe692171e4d49d4b889b218ebbe7eee2606e8744e | 1,736,996,537.98 | 2.00% | | 9 | 0x4a8c0ae6d6590b4f8403e7cf0006a91d6be55155 | 770,420,860.20 | 0.89% | | 10 | 0xb623352e078e57349fe5a8de96109e2395cb20fe | 548,509,817.32 | 0.63% | | 11 | 0x0d0aca99686fced8e6fb39134aaed96f09b5283c | 484,498,382.40 | 0.56% | | 12 | 0x234b6ea3094392ebf49393c0e73a54a5a31f29a1 | 123,437,610.84 | 0.14% | | 13 | 0x5d13c850f3e8eb925b8ab73155b8d8b610e16e5a | 27,632,770.10 | 0.03% | | 14 | 0x92891f12c9448fec7750aff2eb697a62b87659f8 | 12,620,954.29 | 0.01% | | 15 | 0xa088aef966cad7fe0b38e28c2e07590127ab4ccb | 10,000 | 0.00% | Which would lead to a proposed compensation structure of: | Rank | Address | USDC | | --- | --- | --- | | 1 | 0x190f13321c37c3124e73ca530680e6b97bf930ec | 10342.26584 | | 2 | 0xcb7e8cbbbd45f66efd699a538a67bf8c0e5f0636 | 7993.457033 | | 3 | 0x62336d8a9651795de47aabd3aa22f2dc68d21072 | 4820.501205 | | 4 | 0x270c71a312210d0dc87d5f43d5d10840599c8938 | 3879.698142 | | 5 | 0x814611f0eb8c0befb5b6892ca836e51784e9b9b4 | 3520.541825 | | 6 | 0x4c37700d949db46aa11a9f1627070f9af31f8011 | 1156.113089 | | 7 | 0xe683c0751eacee3e6c4446bfa509413f2fb680dc | 863.6562592 | | 8 | 0xe692171e4d49d4b889b218ebbe7eee2606e8744e | 681.9001585 | | 9 | 0x4a8c0ae6d6590b4f8403e7cf0006a91d6be55155 | 302.4277228 | | 10 | 0xb623352e078e57349fe5a8de96109e2395cb20fe | 215.3100261 | | 11 | 0x0d0aca99686fced8e6fb39134aaed96f09b5283c | 190.1956276 | | 12 | 0x234b6ea3094392ebf49393c0e73a54a5a31f29a1 | 48.45921877 | | 13 | 0x5d13c850f3e8eb925b8ab73155b8d8b610e16e5a | 10.85568173 | | 14 | 0x92891f12c9448fec7750aff2eb697a62b87659f8 | 4.968431138 | | | Total | 34030.35026 | Given the small number of address affected, I think fastest and easiest way to handle the payments is simply to send direct USDC transactions, rather than any more complicated claim structure. If you are affected and you believe this data in incorrect, please reach out here or on the Discord server. ---
**Author:** ![Togenkyo](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.ampleforth.org/togenkyo/32/102_2.png) [@Togenkyo](https://forum.ampleforth.org/u/Togenkyo)\ **Post date:** [July 16, 2025, 5:53pm UTC](https://forum.ampleforth.org/t/proposal-to-compensate-bill-broker-lps-for-impermanent-loss-during-fee-curve-transition/863/2 "2025-07-16T17:53:10Z")
I support this proposal ---
**Author:** ![Pascal](https://avatars.discourse-cdn.com/v4/letter/p/e9a140/32.png) [@Pascal](https://forum.ampleforth.org/u/Pascal)\ **Post date:** [July 19, 2025, 5:25pm UTC](https://forum.ampleforth.org/t/proposal-to-compensate-bill-broker-lps-for-impermanent-loss-during-fee-curve-transition/863/3 "2025-07-19T17:25:13Z")
I support the proposal ---
**Author:** ![Brandon](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.ampleforth.org/brandon/32/301_2.png) [@Brandon](https://forum.ampleforth.org/u/Brandon)\ **Post date:** [July 22, 2025, 6:46am UTC](https://forum.ampleforth.org/t/proposal-to-compensate-bill-broker-lps-for-impermanent-loss-during-fee-curve-transition/863/4 "2025-07-22T06:46:24Z")
Thanks for the comments, the signal is posted here: [https://signal.ampleforth.org/#/proposal/0x65b34ed62f5f0bb56f84a0a14c771578e45827195789eff3832998843353f649](https://signal.ampleforth.org/#/proposal/0x65b34ed62f5f0bb56f84a0a14c771578e45827195789eff3832998843353f649) ---
**Author:** ![Brandon](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.ampleforth.org/brandon/32/301_2.png) [@Brandon](https://forum.ampleforth.org/u/Brandon)\ **Post date:** [August 4, 2025, 10:40pm UTC](https://forum.ampleforth.org/t/proposal-to-compensate-bill-broker-lps-for-impermanent-loss-during-fee-curve-transition/863/5 "2025-08-04T22:40:39Z")
Onchain vote is posted below: > **[Tally | Ampleforth | Compensate Bill Broker LPs for Impermanent Loss During...](https://www.tally.xyz/gov/ampleforth/proposal/51?govId=eip155:1:0x8a994C6F55Be1fD2B4d0dc3B8f8F7D4E3a2dA8F1)** > > Compensate Bill Broker LPs for Impermanent Loss During Fee Curve Transition ---
**Author:** ![Brandon](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.ampleforth.org/brandon/32/301_2.png) [@Brandon](https://forum.ampleforth.org/u/Brandon)\ **Post date:** [August 14, 2025, 11:27pm UTC](https://forum.ampleforth.org/t/proposal-to-compensate-bill-broker-lps-for-impermanent-loss-during-fee-curve-transition/863/6 "2025-08-14T23:27:52Z")
This has been executed > **[Ethereum Transaction Hash: 0x7dec7712c5... | Etherscan](https://etherscan.io/tx/0x7dec7712c542fab39c65252ed4e1f45c272e06461bcdb3b42b677c967846ae3b)** > > Call Exec Transaction Function By 0x5d13C850...610e16E5a on 0x57981B1E...07b364662 | Success | Aug-14-2025 05:51:59 PM (UTC)