FIP-6 PCV Initial Stable Coin Investment

[pavel]

@Bruno

Objectives for PCV Management

The three main objectives of PCV Management are (i) FEI exchange rate stability against the US dollar (“peg maintenance”), (ii) providing liquidity for FEI markets and (iii) having a sustainable and growing FEI DAO.

This informs the approach to reserve management, governed by values of, in order of priority, safety, liquidity and return. The portfolio needs to achieve real growth, after inflation, with a level of risk that is appropriate for the PCV’s return and generate a significant amount of portfolio income.

Here we converge.

@Bruno

Additionally, by holding tokens, FEI DAO can take advantage of meta-governance and influence other protocols’ decisions. As a stablecoin, Fei has a central role in DeFi, and meta-governance can be valuable to foster a thriving environment with other DeFi projects.

Maybe, but it should be approached very cautiously at the very least, to the point of nonaction: it could backfire from the reputational PoV as FEI with its resources may well become perceived as a megawhale hijacking smaller protocols within the DeFi community – we all know what reputation whales have regarding their role in deDecentralisation of crypto.