Grant optimistic approval the rate limited ability to mint FEI, to continue to fund DAO operations like FIP-13 lending deployments and potentially Liquidity-as-a-Service
Motivation:
As part of FIP-X, Optimistic approval was granted 50M FEI for FIP-13 lending deployments. To date it has used over 40M, and will need a refund soon.
Instead of continually going back to the DAO to ask for more funding, Fei Protocol can deploy a contract which allows the OA timelock to mint FEI periodically with a hard rate limit on the amount minted. These mintings will still be subject to the 4 day timelock, but would not require governance intervention.
Proposal:
Deploy a RateLimitedMinter for Optimistic Approval which can mint up to 100M FEI per month, for operational usage strictly to be authorized by TRIBE holders via snapshot. This includes frameworks such as FIP-13 and potentially LaaS.
In addition to veto protection by DAO and guardian, the rate limit will be enforced in code to prevent excessive malicious minting.
In favor as-is (100M FEI/month max)
In favor with more conservative params (lower rate limit)
In favor with more aggressive params (higher rate limit)
OAās mandate of injecting liquidity towards lending protocols is emerging to become the leading source of organic revenue for the PCV. A systemic way to runway its growth is definitely required, and in the near future lending demand for FEI can very well exceed our expectations.
On the other hand, perhaps we should consider in the same FIP; a mechanism for the OA to return/destroy excess FEI? We could also introduce that mechanism in a future FIP, since I envision a massive ramp of up FEI borrowing in the immediate future; on the order of 150M+.
Therefore it is unlikely we would need to recycle liquidity any time soon.
Question - while not important at this stage, would the minting capability be bounded by the Collateralization Ratio? While unlikely, we shouldnāt be able to mint more FEI if the CR drops below a certain percentage anyway.