FIP-65: Tribe ETH Fuse Pool

Status: Last Call
Authors: @Fishy

Summary

Verify and whitelist pool 146, then deploy 2500 ETH.

Motivation

Pool 146 is owned by the TRIBE DAO. This pool is designed to create utility for wstETH holders by allowing them to leverage their holdings, and for ETH lenders to allow them to have a low-risk way of earning interest on their ETH. Pool 146 is extremely low-risk, and the DAO can earn a significant amount of yield from this deposit. It diversifies risk away from stETH as the liquidation incentive causes liquidators to liquidate if wstETH is slightly below peg. This FIP also verifies and whitelists this and all future TRIBE DAO pools.

Specification

Transfer 2500 ETH from the PCV to Fuse pool 146.

Verify and whitelist this and all future TRIBE DAO pools.

Voting Options

The proposal will be a yes/no vote. The voting options will be as follows: Whitelist and deploy, do nothing

Voting Rules

This is a binding, binary snapshot vote. If the vote passes it will go to DAO vote immediately. Quorum is 10M TRIBE.

Moving to 48h last call!

Super in favor, this pool has the potential to be a huge revenue generator for the Tribe and attract a ton of ETH TVL looking for yield

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I wanna raise some points for discussion.

  • Comparable Analysis: with 80% utilization, the yield for depositing in pool 146 is 4.11%., with 50%, just 1.59%. As comparison, if we deposit to Lido Finance we have 4.7% with less risk. What is the rational of deploying to the pool instead of increasing lido allocation?

image

Source: Rari Portal

  • OA Scope: It is not in the current scope of OA, moving PCV assets, just moving FEI. I think a relevant increase in OA scope like this should be more discussed and not decide in an isolated deployment. What will be the scope of OA or the OAs. I think before moving with this proposal the DAO need to decide this broad framework.

  • Governance Process: According to Fei governance, a proposal should move to last call when "is done with its initial iteration and fully specified. As the proposal was posted today and already moved to last call, it did not let time for the initial iteration.

This pool is diversified risk from Lido because even if stETH gets liquidated at 70% of the value of ETH we get to keep 100% of our ETH.

The “business” case for supplying this pool is we want to bootstrap a yield market for ETH. This proposal is more oriented towards that side. Imo this will be a highly used pool and we can attract large amounts of TVL to Fuse through it. This is where PCV shines.

I agree with this. Lets scope this proposal to just a single 2500 (or 5000) ETH deployment.

I think a fully specified proposal with a clear implementation can be moved straight to last call. To clarify, the core team will support the technical development of this proposal if it is passed with community approval.

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Resetting last call, removing OA from the proposal. I also believe that FIP-57
recognizes the draft phase as optional.

What do you mean by resetting, what exactly is the proposal now

By “resetting”, I mean setting the last call timer back to 48h. Since @Bruno called out the fact that this extends OA power without a proper framework, I removed OA from the proposal so it can be executed by the DAO.

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https://snapshot.fei.money/#/proposal/0x6f0ec6fb034597b7c48a9c2efd611f0aeae366f587f964dfcb1fa6bfbc065aa2
sent to snapshot!

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