I think this is a good idea as well just like Joey has signaled. One thing to consider is that FEI can get the leverage style stablecoin benefits by leaning into optimistic approval of more FEI mints into Fuse pools/Aave+other lending markets rather than rely on another stablecoin itself to gain that benefit. If the goal is to have synergy with a stablecoin that likely goes >$1 during an ETH price drop then FEI’s flexible gov process can simply put a lot more FEI to be lent out cheaply so that during an ETH crash there is FEI demand (aka ETH lever longs get liquidated and dollar longs were the correct market position). Essentially, Fei Protocol is long ETH mechanistically. The most efficient way to reduce the long position isn’t to intake another stablecoin but to allow users to short more FEI to neutralize the protocol’s long ETH risk.
I understand that during times that ETH crashes, LUSD peg is likely to go up rather than down as debt is auctioned for LUSD and/or people rush to repay debts before liquidation (thus buy LUSD from the market and push the price up), but it is not as symbiotic as it might seem at first. FEI being one of the largest holders of ETH anywhere in the entire industry already exposes it to systemic risks of a large plunge in ETH price like the $1T market retraction in May 2020. In such a case, LUSD itself might have issues being able to cover its backing since it services ETH debt as low as 110% due to its unique/innovative trove mechanism. It would be more prudent to simply let more people short FEI (aka borrow it in lending markets) to hedge the protocol.
But overall, I think stablecoin project camaraderie is also worth intangible positive value so I would support this FIP on the basis that it helps both FEI and LUSD. That’s also why I’m here as well 