Hello Fei Community:
I’m Jai, a co-founder and contributor to the Rari Capital DAO. Recently, I’ve been thinking a lot about Rari, Fei and the overall trajectory of the DeFi space and wanted to share a proposal.
If you’re reading this, you likely are aware of the impact that the DeFi space can have on the world. We, the pioneers of DeFi, can fundamentally change the way that value is perceived and transacted. We can fundamentally change the way the world works. Rari began simply as a yield aggregator but has evolved into a powerful open interest rate protocol, laying the groundwork for any asset to be productive. At the same time, Fei has introduced the most powerful stablecoin in DeFi, providing a trustless foundational unit of account for DeFi and the future of money itself.
Rari and Fei are two of the most powerful primitives with the potential to change the world in their own right, but they are stronger together. We’ve already gotten a hint of how powerful this collaboration can be:
- Fei was the first DAO to spin up a Fuse pool and deposit directly from a DAO
- Fei is directly providing liquidity into a wide spectrum of Fuse pools (10+)
- Fei has assisted in writing one of the first Fuse plugins to level up the capital efficiency of the Liquity/LUSD fuse pool
- Fuse pools hold a large percentage of TRIBE supply
- Fei / Tribe being the first assets inside of Fuse to receive liquidity mining rewards
- Fuse has enabled Fei to directly bootstrap usage of their stablecoin in a way that Aave / Compound never could because of the lindy that existing stables have received
These achievements are just a taste of what Rari and Fei can accomplish together. I believe that we should double down on this collaborative effort for the benefit of both DAOs, communities, and the DeFi ecosystem as a whole.
I propose we bring RGT into the Tribe family and unify our efforts in creating the future of decentralized finance. Together, we will create a DeFi capable of scaling to trillions of TVL and truly revolutionizing the way we (DeFi users today and tomorrow) interact with money and finance.
- $1:$1 conversion of RGT to TRIBE, created from both the existing treasury and newly minted TRIBE
- Fei creating proper contributor incentives as a mechanism to scale Fuse / yield aggregator
- Fully pay back the Rari DAO’s debts from the ETH yield aggregator exploit (to REPT-b holders) in Fei (full compensation in Fei, at Dai price at hack time)
- Keep independent communities (Fei, Rari) building together under a shared Tribe family
(you can view Joey’s proposal with the details of each of the mechanics here: Fei Letter to Rari)
There are a number of protocol-specific collaborations that will be possible with the passing of this proposal. By combining the yield aggregator, Fuse and Fei we can quickly accelerate Fei’s usage as a dominant stablecoin across various chains and layers. We can supercharge each other to the maximum degree. Additionally, we can work together on numerous joint products: various DAO treasury projects, automated liquidity products for new pools and even an innovative oracle model to guarantee liquidity for TWAPs. This will have no direct impact for the users of today. For the users of tomorrow, it should result in better products, better experiences and a wider set of possibilities. As a user of Rari, I am excited for what this means.
A treasury diversification into each other’s assets is something that we have seen before, but historically doesn’t actually provide much substance in aligning incentives because of the sheer scale of DeFi projects. By going all in with each other, we are absolutely aligned with each other’s products, communities and spirits. We are in it for the long haul, together.
By working together with the Fei community, becoming part of the Tribe family together, we instantly start to build our empire. Together, we are stronger than ever before. We will be ready to scale and conquer. I am excited about the potential of the Rari Capital community joining the Tribe family and I am stoked for what we will be able to do together.
I’d like to open this up to discussion and hear everyone’s thoughts on this. What do you think?