FIP-19: Subsidized RAI Bonding curve

[Proposal] Subsidized RAI Bonding curve

Authors: @guifel


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:
  • RAI stats:
  • Dune analytics stats:
  • Main app:


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 (

Risk Analysis

For this risk analysis we reuse the recent assessment from the Aave team from the RAI aave onboarding proposal (

Smart-contract audit repo that includes audits from OpenZepplin, Quantstamp and Solidified:


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 ( 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:



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


Hi @Guifel , welcome to the Fei community! I can help you set up a poll for the time being. Feel free to vote here.

Would you support a RAI bonding curve?
  • Yes
  • No

0 voters


I support this proposal, RAI would be a great non-pegged stable addition to PCV and the sizing can grow as RAI does.

I think the discount pre-scale should be closer to 30bps, as the DPI bonding curve filled up quickly at a 1% discount.

The Fuse pool addition would be great as well :slight_smile:

1 Like

I think the discount pre-scale should be closer to 30bps, as the DPI bonding curve filled up quickly at a 1% discount.

Fair, edited.

The Fuse pool addition would be great as well

Sure, we are talking to some user of the pool 9 from our community to see if they are comfortable with adding FEI as a collateral asset to the pool. It looks like it should be fine.

1 Like

If this goes through, I think it would be great to reserve a portion of the RAI to put into a FEI/RAI AMM pool. Uniswap v3 would be ideal, but could be a bit complicated as there’s a possibility of price shifting out of range over a medium/long time period. But a fairly wide range (eg. 2.7-3.3 FEI per RAI) would probably work well enough, and potentially a service like Gelato could be used to set up an automated rebalancing system.


Yeah, I would have like allocating to V3 RAI/FEI but they don’t yet have an adapter contract for UNI V3.

@joey I would really recommend investing into V3. It was a game changer for RAI in terms of depth of liquidity. I would have like to write that adapter but I am a bit too busy.

1 Like

V3 is on our radar, our plan is likely to use a service to do automated rebalancing as @monet-supply mentioned. We don’t need to reserve any portion as we can always reallocate later

1 Like

Rebalancers are hard and still really unproven for any kind of use right now. It will take some time before they are suitable for something like FEI.

You would get already a long way with fixed range positions for example for FEI/Stables. For something like FEI/ETH, partially allocating to a wide range like $1000-$5000 would give great improvements. You could even do full range which is still strictly superior to uni V2.

Great to see this proposal! It is well aligned with the PCV Guidelines.

I support this and the supply of RAI and FEI to fuse pool 9.

I agree with @Guifel that Uni V3 can be game-changer for Fei due to its huge capital efficiency, hope we can start to use it some way soon!

1 Like

Hey @Guifel .
I really love the proposal and will support it. This could lay the foundation for future partnerships. And I will give you the right to add polls for the future.

Also, I wanted to point out that we already have a FIP-18 up, see:

So it would be nice if you could name this FIP-19.


love rai & am in favor of this

The RAI would be allocated to the Rari Capital Fuse pool 9 which currently yields about 50% APY.

if I might ask, less familiar with rari pools but the apy I see for depositing rai into pool 9 is ~3%? what am I missing?

It varies a lot day-by-day…RAI is currently 13.51% on AAVE, and it was much lower yesterday

This would also be a fairly substantial pile of RAI so it would probably have some negative effect on the lending rates as well

1 Like

thanks for the clarification!

I just posted the proposal on snapshot:


Voted in favor, thanks :slight_smile:


The proposal is now live on-chain:

As per the snapshot vote, 50% of the RAI will be allocated to Aave and 50% to Fuse


One thought - does it make any sense for RAI-FEI to be added to uniswap/sushiswap (or does this pair exist already)?

Yeah, I would have liked to allocate some to FEI-RAI liquidity. However, given that it’s a stable pair, it only makes sense to use Uni V3. A fixed range 2.98-3.02 FEI/RAI would have done a great job. But unfortunately, there is no PCV adapter for Uni V3 yet. Whenever it’s ready, I’m happy to make a proposal to add some RAI/FEI liquidity.

1 Like