Achieve Peg & Appease Both $TRIBE Pre-Swappers & $FEI Sellers (summary + my 0.02 FEI)

I have seen lots of ideas on how to resolve the problem we find ourselves in. I will not be reinventing the wheel. I will include, by reference, links to the ideas I agree with - perhaps with little modifications in parameters.

To all long-term TRIBE token holders, I believe the peg problem can be resolved and will make the FEI Protocol stronger in the long term. This situation forces an upstream confrontation of inevitable downstream problems – better we resolve them now. I do not believe we need to implement a new protocol as @fei.saver proposes here

We all agree on the following:
(1) Immediate action needed to achieve and hold peg.
(2) An exit valve is needed flush out FEI selling pressure.
(3) Motivate integration of FEI with other Defi protocols.
(4) Address the precipitously falling TRIBE token price by creating demand/dissuading selling.
(5) Achieve 1 – 4 with minimal depletion of the PCV as possible.

(1) Immediately Achieve and Hold Peg
@Joey outlined our options here:. From this poll by @Eswak, community members see #4 (using the reserves to stabilize the price more directly by selling ETH for FEI) as their favorite option but remember that peg is needed immediately and according to @joey, this option will take 1 to 2 weeks. @joey when do you expect we will begin voting on proposals?

I believe #3 (setting a pre-defined cadence for reweights) is the best option for immediately achieving peg – although it will take many iterations. #3 also makes #1 (forced reweights) unnecessary. It is also the second-best option according to the @Eswak poll and requires “minimal contract change” according to @joey.

(2) Exit Valve for Desperate FEI Sellers
For this, I agree with @federer and incorporate his proposal to “Allow FEI holders to redeem 0.95 worth of $ETH for 1 FEI”. However, I would modify from $0.95 worth of ETH to $0.90 worth of ETH for 1 FEI. Two things, (i) this option is largely for desperate FEI sellers with opportunity costs and immediate need for funds. They have sold their share of the genesis 10% TRIBE allocation and made some money – so this exit channel will result in an approximate wash scenario. (ii) FEI sellers have sold and are selling with penalties of almost 49%. I think desperate FEI sellers will be delighted with a $0.90 worth of $ETH for 1 FEI redemption offer. This is analogous to selling the reserves with a fixed discount or an auction described by @joey although I don’t believe there should be a discount at all.

(3) Motivate Integrations
Capping the burn and mint to 5% will help achieve accuracy between oracles and actual FEI prices – the predictability of which will encourage (if not motivate) integrations. It will also remove the fowl taste of unfairness decried by FEI sellers – and doubly serve the original purpose of Direct Incentives (DI) – which should not be thrown out the window just yet.

(4) Address the Precipitously Falling TRIBE Price
Demand for the TRIBE token can be achieved by doing either or both items below. Note that only an announcement and commitment to these incentives are needed now – the immediate goal remains to achieve and maintain peg.

(i) referencing the proposal of @cozeno“Possible Secondary Airdrop for pre-swappers”. Caveat here is that the airdrop vests linearly for 6 months beginning 6 months after allocation – so vesting completes after 1 year. Airdropped TRIBE tokens can be from the 40% of TRIBE supply managed by the DAO.
(ii) voting in a ‘yield allocation advantage’ for $TRIBE token holders that maintain token balance in their wallets between days 7 post genesis and a future date - i.e., the beginning of the first PCV deployment for yield. TRIBE token holders that meet this requirement will receive 100% of the first 6 months of yields from the first deployment of the PCV in staking AAVE, Compound, YFI, Bancor, or whatever yield bearing strategy the community votes to deploy the PCV on. For this strategy, it is important that the exact date of the wallet sweep is not known now – the exact date will be proposed retroactively and voted on by the community sometime in the future. Again, the sweep date should fall any date between day-7 post genesis and the beginning of the first PCV deployment. The FOMO on yield allocation will drive demand – or at least dissuade further selling.


What this guy said ^^

@cryptozen Based on the above quote from you, what do you think should be the cadence for reweights? Wouldn’t bots be aware of this cadence and continue to “game” humans?

I agree and the set cadence is potentially a big problem. @joey also see it your way. Maybe activate temporarily to see performance and deactivate with guardian is one way to go. All of the reweight proposals can be gamed somehow. Ideally, #4 is the better route but the 1-2 weeks timeline makes me cringe. FEI at $0.80 now.

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I agree with everything in this post . I pre swapped and staked day one and have been sitting and hoping for someone to make a good argument for both sides . Peg and finding uses for fei should be priority We need these ideas to go to vote .

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This is all great, but you do not understand one important thing, trust in Fei is undermined by the unfair distribution of Tribe tokens, who will use Fei after that?

Why would I keep or use Fei so that they can be sold to me later at the maximum price? it is obvious

Then let the people who want to go out immediately at the price of 0.9, other rules can be discussed later.

people who now sell Fei at a loss are the target audience of the project, these people will no longer return to the project and will not use Fei; they have a dislike for the project

I posted the below on discord, but popping it here for visibility:

I think this is rewarding 0% preswappers. Why? Well we have to ask why is FEI trading at 0.85 (after burn or on secondary markets)?

  • Well if you bought 13FEI for $13, you also got 1 TRIBE free.
  • If you sold that for $2 you’re now down $11 but holding 13 FEI
  • So what do you need the price to be to break even? 0.85

Anything >0.85 rewards 0% pre-swappers (admittedly $2 per tribe is somewhat of an average of the last few days, but 2.5 or 1.5 doesn’t change the math enough to make 0.95 or 0.90 justifiable)

To put it another way, let’s say I’m a whale that wants to make a quick buck, here’s what I’d have done:

  • I buy 130m FEI in genesis at 0% preswap.
  • Post genesis I sell my airdropped 10million tribe for an average of $2.
  • Ok now I have $20m and 130m FEI.
  • Now I sell that FEI for 0.95 (the current proposal) giving me $123.5m.

I just made a cool $13.5m (10% ROI in a matter of days). Where is that money coming from? Well the PCV is handing it out to people who don’t believe int he project.

This is just reweighting isn’t it? When a re-weight happens, PCV ETH is spend to stabilize the price.


The $0.90 eth for 1 fei sale is for folks desperate to want out now. For those brave enough to remain, the cadenced reweight will be the way out with no loss - although the latter will take more time

We’re in agreement here. Its just I dropped sale price to 0.9 and you dropped to 0.85

Yes, but without a cadence. There’s a high chance bots take advantage of the cadence predictability of #3. However after thinking about the bots scenario further, maybe not as bad - eventually. Yes, the arb bots will rinse and repeat but soon, they will out bid each other raising the fei support price until peg is attained. The question is how much of the pcv will be drained to achieve this?

Isn’t it possible to randomize the cadence? That would be the best solution if possible. Your thoughts?

Not sure where you’re coming from. are you saying an airdrop will be unfair? or that the genesis tribe distribution was unfair?

Can we incentivize straight FEI lockup with TRIBE yield farming (with less rewards than LP pool) while FEI is below peg? This would mean selling less PCV, incentivizing a shrinking supply of circulating FEI, while giving more flexibility over treasury. We can reduce TRIBE yield rewards for FEI lockup in direct proportion to distance from peg. Can also tweak the reweights and yield farm with portion of treasury and use profits from farming to buy and burn FEI while below peg

Let other people who wanna invest in this project that is one of the great projects what is a fantastic opportunity to invest in.

Awesome project. Hope you success

I agree with everything in this post . I pre swapped and staked day one and have been sitting and hoping for someone to make a good argument for both sides . Peg and finding uses for fei should be priority We need these ideas to go to vote .

They are vested (this is public information every investor should have known before putting their money in).

I agree that not all 100% preswappers are “short term speculators”, but those who are crying for refund or immediate compensation are definitely “short term speculators”.