Greetings to the Tribe.
I’m @OneTrueKirk, working on Volt Protocol, a floating price stablecoin based on RAI but backed by a wide range of collateral assets. We’re a “friendly fork” and are sharing 6% of our governance token VCON with the Reflexer community in exchange for Reflexer Labs’ permission to use the RAI code.
We’ve been pursuing close cooperation with partners including Rari and Olympus. When setting out to build a new product in DeFi, I believe teaming up with existing DAOs is the best approach.
We’d love to work with the Tribe, allocating 6% of the VCON supply in exchange for support with our liquidity needs for launch and other forms of collaboration described below.
Liquidity support from the Tribe. We hope to see the FEI protocol support our launch by providing a substantial amount of FEI/VOLT liquidity, ideally on Uniswap v3 with full range (can be tightened later, we may see some initial volatility and full range minimizes oracle manipulation risk). This pool will be our core price oracle. In the future this position can be managed to stay in a range around market price.
VOLT as a high-yield PCV asset. VOLT can be considered a proxy for exposure to long tail DeFi assets that might be too risky to include in FEI’s backing. Onboarding VOLT as part of Fei’s PCV backing reduces the protocol’s exposure to ETH volatility while also offering an opportunity for yield.
Flexible leverage for FEI lenders. In various high demand Fuse pools, users will be able to mint VOLT against their fFEI, giving FEI users access to more capital efficient lending opportunities.
Control over VOLT credit allocation through VCON. Allocating VCON to the TRIBE means that in Volt v2 they will be able to direct a line of credit among assets of their choice, including PCV assets, preferred Fuse pools, or other opportunities for yield generation. The TRIBE owning VCON is like a larger bank taking an income-producing stake in a smaller bank with a riskier collateral basket.
FEI/VOLT LP as PCV for VOLT. Volt will likely carry out a bonding program via Olympus Pro to absorb PCV in exchange for VCON emissions. The FEI/VOLT pair is a natural choice if FEI helps us build up our early liquidity. The goals of this are as follows:
- Preemptively build up surplus buffer, rather than relying on VCON as backstop
- Productive reserve (protocol controlled liquidity)
- Smooth supply dynamics
- Ensure protocol is well capitalized for years of building
Bootstrapping decentralization. A large portion of the VCON supply is being distributed to partner DAOs including Olympus, Rari, Fei, and Reflexer. Our hope is to bootstrap an effective and decentralized community. We’d like to work closely with the Fei Labs team, but would also like to see the TRIBE community (as well as other partner DAOs) select one or more delegates to participate in VCON governance.
Looking forward to hearing feedback from the community. I believe there is room for a wide diversity of stable assets with different risk and return profiles, and that we’re stronger building together.
If you’d like to learn more or follow along with the project, please join us on Discord.