[Edit: proposal increased from 1M over 3 months to 4M TRIBE over 6 months]
Title: FIP-22 Aave Borrowing Incentives
Stage: Last Call
Allocate 4m TRIBE from the TribalChief over 6 months as incentives to Aave FEI borrowers, conditional on both the Tribal Chief upgrade passing and FEI being added to Aave.
This post is dedicated to Aave incentives because there are unique practical constraints on how we can include these in the TribalChief incentives. The intention behind this post is to unblock the main TribalChief snapshot and rollout and separate the Aave considerations out. Having the incentives publicly approved by the Fei Community will provide further demonstration of partnership and strengthen our proposal to add FEI to Aave.
First, aave was the most approved incentives program behind the current FEI-TRIBE LP rewards on this snapshot: Snapshot
This would indicate broad community support for pursuing some form of incentives.
Here are the main constraints:
- We need to use Aave’s Incentives controller
- Aave’s controller distributes per second instead of per block like the TribalChief, so streaming is complex
- If Fei Protocol supplies FEI as planned, the protocol would be forced to farm the TRIBE rewards
- All incentive changes in distribution rate and incentivized tokens need to come from the DAO
For these reasons, the only viable way to apply incentives to AAVE is to allocate a single chunk of TRIBE rewards to be distributed with a target end date in mind. This approach would mean Aave cannot be a part of the TribalChief incentives program as those rewards change as new programs are added and are calculated per block.
Additionally, we should only incentivize borrowing so that we avoid farming our own TRIBE rewards as a DAO. The benefits of incentivizing borrowing are that it stimulates the demand side for FEI on one of the largest lending platforms. It helps subsidize using FEI for leverage to compete with DAI, USDC, and USDT.
We can allocate something like 1M TRIBE from the total 130M TRIBE remaining for rewards distributions.
These would be essentially non-revocable and committed upfront for 3 months. We can evaluate extending the rewards program before the 3 months are up.
Withdraw 4 million TRIBE from the FeiRewardsDistributor and send to the AaveIncentivesController for TRIBE.
Update the AaveIncentivesController to have an end date of March 1, 2022 and an emissions/s rate of 4m TRIBE/total seconds (updated at proposal time) exclusively for FEI variable rate borrowing.
Development will be carried out by @joey and code review by the Aave core team.
- I support this proposal as-is
- I support this proposal with more aggressive rewards or timeline
- I support this proposal with more conservative rewards or timeline
- Wait until after on Aave to see borrow activity
- Don’t incentivize Aave borrowing