FIP-60: FeiRari Rewards Update

Proposals
1

Summary:

Adjust TribalChief rewards to go directly to the FeiRari Fuse pool and include new incentivized assets in the pool.

Motivation:

After the FeiRari merger, we should look to deploy assets and incentives into Fuse wherever possible. One recommendation I’ve had for new DAOs is to use Fuse as their main rewards distribution platform because of how configurable and composable it is. Not to mention, it is incredibly useful for users to have capital efficiency on their reward positions for borrowing and leverage.

The goal of this proposal is to transition existing rewards and future rewards to the FeiRari pool wherever possible. This benefits both users and the protocol in many ways:

  • Users get borrowable liquidity against yield positions
  • Protocol gets FEI utilization + fees

We can even set up a “bond” like structure where the deposited tokens are redeposited through plugins to earn other protocol tokens for Fei Protocol. The prime example of this would be a CVX plugin where Fei pays out TRIBE for d3 token liquidity in Fuse and gets to keep any CRV/CVX yield it earns.

FeiRari and incentives are becoming increasingly nuanced and complex to manage. As an optional consideration for this proposal, we can establish a Fuse OA multisig which controls the FeiRari pool parameters. This can include Fei and Rari core team members as well as community members with deep Fuse familiarity. This is in line with my recently shared thoughts on how to keep governance lean and effective.

Proposal:

Add the following pools to FeiRari with TribalChief rewards:

  • G-UNI FEI-DAI
  • FEI-3CRV
  • Any approved rewards from FIP-59

The rewards for new pools can be sent straight to FeiRari, whereas old pools may either use a plugin for backward compatibility or change-over.

These will have supply caps of 25m to be increased as they fill up with demand.

  • Approve adding TribalChief tokens to FeiRari
  • Do not send TribalChief tokens to FeiRari

0 voters

1 Like
2

This makes a ton of sense and support it.

My only comments are relating to special treatment of exotic collateral:

  • we should start with conservative LTV parameters
  • we should ensure that there are no edge cases with LP token oracles
3

Moving to last call! Will post a snapshot in 24 hours at noon on 12-28.

This will be a binary snapshot vote on whether to add all possible TribalChief rewards on a go-forward basis to FeiRari with LTV of 60% and 25m supply caps to be increased as they fill up.

This will include a bond structure for Curve pools with other pools tbd.

The snapshot will not include a Fuse OA multisig, that will be left for another proposal.

4

Snapshot is live! Snapshot

5

This all sounds great to me! Fuse should be the best out of the box solution for DAO’s liquidity solutions and this will be a great framework for other protocols to adapt, while providing an array of benefits to Fei.

Safe LTV and supply caps are a perfect combination for the guarded launch.