[Proposal] Subsidized RAI Bonding curve
Authors: @guifel
Summary
Open a RAI bonding curve with 6 million FEI subsidized. This would mean the PCV acquiring about 2 million RAI (0.8% of the PCV). The RAI would be allocated to the Rari Capital Fuse pool 9 which currently yields about 50% APY.
Background on RAI
RAI is a decentralized and governance minimized stablecoin. It launched in February 2021, the current market cap is $50m and the TVL is $160m. RAI has managed to stabilize using its on-chain PID controller and is now undergoing a governance minimization process with the intention to harden the protocol. RAI follows the same overcollateralization model of MakerDAO’s DAI but is exclusively backed by Ether. While not being strictly pegged to 1 dollar, RAI is stable showing a daily volatility well under 1% on most days.
- Coingecko page:
https://www.coingecko.com/en/coins/rai
- RAI stats:
https://stats.reflexer.finance/
- Dune analytics stats:
https://dune.xyz/HggqX/Reflexer-RAI
- Main app:
https://app.reflexer.finance/
Motivation
The goal is diversification of the PCV, getting some exposure to fiat currencies. RAI offers a truly decentralized alternative to traditional stablecoins that are often directly or indirectly backed by custodial assets. Acquiring RAI is a first step toward achieving the stablecoin allocation target according to the PCV guidelines (https://drive.google.com/file/d/1bgBGC9ZJqxtSEe7xnRM47Vu8De_1HVDC/view
).
Risk Analysis
For this risk analysis we reuse the recent assessment from the Aave team from the RAI aave onboarding proposal (https://governance.aave.com/t/arc-add-support-for-rai/3862
).
Smart-contract audit repo that includes audits from OpenZepplin, Quantstamp and Solidified:
https://github.com/reflexer-labs/geb-audits
Specification
Open a RAI bonding curve with 6 million FEI subsidized.
Bonding curve parameters:
- Scale 6M FEI
- Mint cap 10M FEI
- Discount pre-scale 0.3%
- Premium post-scale 2%
Allocation: Rari Fuse pool 9 (app.rari.capital/fuse/pool/9) AND/OR Aave,
There are 3 options possible:
- 100% Aave
- 75% Aave + 25% Fuse
- 50% Aave + 50% Fuse
RAI address: 0x03ab458634910AaD20eF5f1C8ee96F1D6ac54919
RAI/ETH Chainlink Oracle for the bonding curve: 0x4ad7B025127e89263242aB68F0f9c4E5C033B489
Rari Fuse pool 9 RAI cToken Address: 0x752F119bD4Ee2342CE35E2351648d21962c7CAfE
Rari Fuse pool 9 Comptroller: 0xd4bDCCa1CA76ceD6FC8BB1bA91C5D7c0Ca4fE567
Rari Fuse fFEI token: 0x11A9F6ae6B36B4b820777D05B90Cd6CCCB1CDa31
In addition, 1m FEI could be added to the Rari Fuse Pool 9 if FEI is added to the pool if this is accepted. See: https://forums.rari.capital/d/136-add-fei-in-pool-9
WIP PR:
https://github.com/fei-protocol/fei-protocol-core/pull/125#2
Vote
TODO: Add poll, I can’t add it because of forum restriction.
Edit 1: Changed the pre-scale discount from 1% to 0.3%
Edit 2: Renamed proposal to FIP-19
Edit 3: Added allocation options