- reduces TribalChief allocation points for Uniswap v2 FEI/TRIBE LP tokens from 1000 AP to 0 AP.
- reduces TribalChief allocation points for Curve 3CRV/FEI LP tokens from 1000 AP to 500 AP.
- Increases TribalChief allocation points for Uniswap v3 Fei/USDC 0.05% fee tier Gelato tokens from 0 AP to 500 AP.
Motivation / Background
FEI/TRIBE LP tokens
25% of FEI/TRIBE liquidity (amounting to ~$87MM) is currently staked in the TribalChief contract earning 47% APR. The remaining 75% (amounting to ~$271MM) is owned by Fei Labs core team and investors, subject to a 1 year cliff and 3 year linear vesting, and custodied by the IDO contract.
$1.32 | Uniswap FEI/TRIBE LP (UNI-V2) Token Tracker | Etherscan The trading volume on the Uniswap v2 FEI/TRIBE pool is de minimis. At current TRIBE prices, TRIBE holders are paying $112,000 per day to increase the size of the Uniswap pool from $271MM to $358MM, which results in marginally lower price impact.
This proposal removes TribalChief incentives for this pool, which will increase the value of our other incentive programs proportionally.
Fei / Stablecoin Liquidity
This Curve metapool is doing very little volume in part because it is not being seen by aggregators like 1inch and Paraswap, and because of the existence of concentrated Uniswap liquidity:
-incentivized Fei/Dai .05% Gelato LP with $18MM TVL, and
-unincentivized FEI/USDC Uniswap liquidity with $33.75MM TVL
These two pools combined are averaging ~$70MM daily volume recently with a combined 100 AP, whereas the Curve pool is doing far less volume with 1000 AP. This combination of changes will create deep, concentrated liquidity on Uniswap, and create the most liquid onramp to
The 2 pools:
Gelato Uniswap v3 FEI/DAI .05% (100 AP, no change from current)
Gelato Uniswap v3 FEI/USDC .05% (raise from 0 AP to 500 AP)
will have combined 600 AP vs the previous 1000 AP for the Curve pool. This will be a more efficient use of incentives going forward.