BORROW FEI design

I drew the design of Borrow FEI idea. And I hope FEI will be more and more usable in DEFI world . But for the first step after peg FEI to 1 dollar.
I suggest team develop the Borrow FEI function to meet the needs of our community , especially the 100% pre-swappers holders as me. They will be long-term supporter for FEI protocol.

  • The Mission of 「Borrow FEI」:
  1. Solve the need of pre-swappers who want to stake LP
    but have no more assets to get FEI
  2. Expand the usage of FEI
  3. Be the core function of FEI
  4. part of Interest income can be used to repurchase and burn $TRIBE .
    TRIBE token deflation will make TRIBE more valuable,
    and TRIBE holders benefit from the income of system.
  5. Keep pre-swapper tribe holders, bring more new tribe holders.
  • About collateral assets allowed:
  1. TRIBE
  2. ETH
  3. USDT, USDC
  4. or othes …
  • About Borrow ARP:
    I suggest users who use TRIBE as collateral assets
    should have an advantageous borrow APR (eg. 50% discount ) than others.

  • To list integrations coming soon
    We can list some integrations that have not realized but we are devoted to doing.
    It will be appealing to new users.
    And I think it is the solid achievement what we want to reach.

6 Likes

Thanks, Jun. I like this idea.
I believe it will expand the capabilities of the protocol and enable participants to borrow coins.
But if I’m not mistaken, Rari has a similar function.
What is the advantage of your option over Rari?

This is a great idea and something that IMO should have been part of the protocol from the beginning. Issuing loans and adjusting the APR through governance (like Maker) helps stabilize the peg. Favorable treatment of Tribe collateral is a fantastic perk.

This should be FIP-3.
Loaning money directly to users at a low interest rate keeps the peg from getting too far above $1 (which is about to happen if ETH keeps going up)

1 Like

Hello Spiral

Thank you for asking.
As you see on the jpg below,
Because Pool 8 on Rari is created by individual,
the borrow ARP of FEI is in hight level for not having enough depth and volume.

And I suggest and I hope we can hold an official lending pool, which will bring us many merits:

  1. Adequate volume and steady depth.
  2. Setting some incentive on borrow APR(of FEI) for TRIBE Holder
  3. Earn interest income from the function and burn TRIBE.

On the beginning of our project, use FEI as stable coin has not been publicly accepted as DAI.
So we should create the application scene ourself, and we tribe holder really need it.
Building the core function of FEI itself is the right way to make FEI stronger.
This will be a solid progress for FEI protocol, and enhance the cohesion within the community.

In my opinion, FEI protocol should proactively build more functions unique,
instead of waiting others provide us functions.
And meanwhile We promote the integration with other systems such as AAVE and COMPOUND.

Keep Building is also the key of success on MakeDAO project.
To be the top in stable coin field, we should be more devoted to our project.

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I think this aligns quite well with the discussions on the PCV and using it to mint FEI for lending and distribution as a potential diversification strategy.
I also like the notion of the ‘preferential rate’ to TRIBE being deposited as collateral.

Do you envision the borrowed FEI will mostly go back into the FEI/TRIBE staking pool? What are other potential use cases for FEI?

2 Likes

Hello, arcology

Thank you for your comment.

Yes, I think so , as other proposal also mentioned:
Pre-swappers without FEI are eager to borrow FEI without losing the share of TRIBE,
We want to stake to earn TRIBE to cover our big hurt during Genesis.

100% pre-swappers are the majority of the community.
Team should care more about the group after FIP-2.

I am not financial pro, and I don’t know for now.
But I think we should move on building the system step by step when the need occurs.
We do not know what new need will happen next without moving forword.

At last, I wish FEI protocol can be the Federal Reserve System in the DEFI world.

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FEI Protocol basically prints stable coin and maintains its peg . Main idea is to use other bonding curves to built bigger and more efficient PCV . FEI should not be in lending business which requires totally different skill sets for now… In stead it should deploy relationships with other reputable lending/ deposit taking platforms for use cases… It had better help Tribe holders easily pledge their Tribes and get loans from other platforms but not from PCV.

I believe that the FEI should have a set of basic skills. Otherwise, I agree that the FEI should establish relationships with other reputable platforms.
Alternatively, this could be done on an FEI basis for the convenience of users, but other financial platforms will be used “under the hood”. So that the user does not have to leave the FEI website and take additional actions outside of it …

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Great , same thinking as me.