FIP-20: Lido Staked ETH (stETH) - Part 2
Coming off of the success of the initial stETH proposal (FIP-9), this proposal seeks to increase the investment to stETH by a further 10,000 ETH from the PCV Dripper (currently reserved for the 0.95 Redemption function) into stETH.
FIP-9 was conceived as an objective by the PCV Diversification Working Group by @Bruno, @Eswak, @countvidal and @Matthew_Graham, which has been successful in creating revenue for the PCV, generating approximately 2 ETH every 2 days as of this writing.
Separately, the current of FEI remains stable at $1.00 and recent trading is mostly above the $1 mark, buoyed by the rise in ETH pricing. As such, the Redemption function has been sitting idle with over 174k ETH available for redemption to act as a virtual price floor. As the peg reweighting system and the various initiatives to seed FEI liquidity are stable and expanding, the Redemption function does not need such a large reserve of ETH to back up its purpose.
Therefore, to further leverage the assets of our PCV and to activate idle funds, this Proposal will take 10,000 ETH from the PCV Dripper and deposit into stETH. There should be minimal dev/coding work as the contracts used should be the same as FIP-9. As of this writing, there is approximately 244k ETH in the PCV. a 10k ETH deposit represents just over 4% of the PCV. It will also represent one of the largest investments into stETH by a DAO.
Please refer to the original FIP-9 proposal for an analysis of stETH and its risks and rewards.
The below poll would signal interest in this proposal, with additional no-go and options to either increase/decrease the amount to be invested.
- Yes - per current proposed specification at 10,000 ETH
- Yes - but more than 10,000 ETH
- Yes - but less than 10,000 ETH
- No - do not invest more into stETH