FIP-69: FEI/FOX Token Swap

Hello FEI/Rari Tribe!

This is Kent; I lead the Tokenomics workstream at ShapeShift. On behalf of all of us at the DAO, congrats on your merger. We’re super excited to see what new doors this opens for both communities.

Here at ShapeShift we’re very familiar with both platforms, having already plugged into their unique capabilities. On Rari, our FOX Token is available in both the Tetranode Pool and our own “Fox and Frens” pool. We recently used Rari to borrow FEI in order to fund our December payroll. Additionally, we’re a proud partner in the FEI liquidity-as-a-service (Laas) program and are currently tapped into a steady stream of TRIBE rewards in exchange for providing FOX liquidity.

Looking ahead, we’re excited to collaborate even more closely with your newly-united TRIBE. To provide just one example: our decentralized, open-source interface could help your community connect with more users and offer them an improved experience by facilitating direct integrations with RARI pools. Similarly, the addition of FOX rewards to Rari pools could create a win-win for both projects; FOX would become more widely used and distributed, while simultaneously incentivizing greater use of Rari.

From a tokenomics and treasury management perspective, our top priority is to diversify a portion of our treasury–which primarily consists of FOX–into stablecoins. (The current state of the treasury, including most of our active DeFi positions, can be viewed here: 0x90a4...51be -

Given our existing relationships with the FEI/Rari communities, we’ve identified a promising way to achieve a portion of that desired stablecoin exposure (while at the same time, deepening our current win-win relationship): a DAO-to-DAO swap of FOX Token for FEI.

For ShapeShift, FEI’s price stability, vibrant community, expanding ecosystem, and RARI merger are highly desirable attributes. For FEI/RARI, potential benefits of this token swap include:

  • Treasury diversification
  • Direct integration into the ShapeShift platform
  • The ability to vote on DAO proposals (FOX is ShapeShift’s governance token)
  • Exposure to ShapeShift’s various value-accrual mechanisms:
    • Revenue-sharing agreements with DeFi projects integrated into our platform, such as Yearn
    • Revenues generated from commissions from validators operated on behalf of the DAO
    • Revenues generated from allocating assets in the DAO’s treasury to DeFi strategies

Where we’re headed:

The roadmap for the ShapeShift DAO is ultimately driven by the community of FOX Token holders. Currently the community is aligned on–and rapidly progressing toward–the following mission and vision:

Vision: We envision a borderless financial system built on open, decentralized protocols.

Mission: We shall be the pathway into this borderless financial system; an open-source, multi-chain, self-custody crypto platform enabling billions to achieve financial sovereignty.

An early, in-progress version of the new ShapeShift is soft-launched at https app dot shapeshift dot com (sorry, the forum is only letting me post two links) and we’re planning an official launch for January 17th, 2022. This version is open-source, supports multiple wallets, multiple blockchains (not limited to EVM-compatible networks), and is architected for complete decentralization.

The new ShapeShift, powered by a full open-source stack including HDWallet , Unchained , Chain Adapters, and Web repositories, will enable completely decentralized access to DeFi protocols across any chain. Additionally, the upcoming FOX Chain will provide backend node infrastructure for any interface that wants to be truly decentralized, including ShapeShift’s.

Finally, through integrations with DEX and DEX aggregator protocols such as 0x, THORChain, and Osmosis (in-progress), ShapeShift enables users to seamlessly move crypto assets across chains with no KYC, custody, nor added fees. With the understanding that both the decentralized interface and blockchain data infrastructure are imperative to bringing DeFi to the masses, the ShapeShift community is actively coordinating to build this.

What exactly does this proposal entail?

$2 million worth of FOX would be exchanged for $2 million worth of FEI. The price data used to determine the equivalent token quantities will be determined at a date and time that both DAO’s mutually agree upon in advance, with the Chainlink feed for the respective tokens providing the relevant price data. The two communities will mutually agree upon considering additional token swaps in the future, should this initial swap prove beneficial for TRIBE and ShapeShift.

In addition to executing its side of the DAO token swap, ShapeShift would commit to integrating Tribe products into its platform (initial discussions about this are already in the works), as well as adding FOX rewards to Rari pools.

Ultimately, we view this potential token swap as just one more building block for constructing a solid, enduring foundation of partnership and collaboration between both of these vibrant DAO’s. We look forward to joining you in helping to build a more inclusive, open, permissionless, and vibrant future.

(Note: this proposal has been cross-posted on the ShapeShift DAO governance forum, where you’ll also find links to HD Wallet, Chain Adapters, and other building blocks of our infrastructure:


Hey Tribe fam - Jon from ShapeShift DAO (one of ShapeShift’s co-founders) here :wave:

We have loved collaborating with both the fei and rari teams and community. We are super excited about this proposal as a way to further cement the relationship between our DAO’s and find further ways to work together!

I would be remiss if in addition to the awesome points in Kent’s above propsoal I did not mention that the tribe getting a sizable amount of FOX can also be staked in our token reactor to acquire TOKE rewards, which I think is yet another added benefit (and we are already in talks with rari to enable tFOX as collateral across fuse pools when that becomes available!)

I am in full support of this proposal, and would also support upping the swap amount anywhere from the current suggested 2 mil up to 10 mil (or anywhere in between) if both communities were in support.


Love the proposal and this detailed proposal provides a very well thought out pitch to the Tribe DAO. Prior to the Fei-Rari merger, I worked closely with the ShapeShift DAO on deploying Fox’s first lending/borrowing integration which was a Fuse pool. This has since expanded to multiple Fuse pools that have FOX enabled as collateral and this is just the start of our long-term relationship.

On our combined roadmap with ShapeShift, we will see tFOX in their DAO controlled Fuse pool as well as potential for a Fuse integration directly within the new open sourced and decentralized dashboard. I am very excited about all of our upcoming developments together, and a token swap of $2M sounds the most ideal to me in pursuing more synergies together and combining resources.

Here are some screenshots of the proposed Fuse integration that the ShapeShift design/product team created!

Looking forward to hearing everyone’s thoughts before this is moved towards a vote.


I’m in favor of a FOX purchase as well! So many potential synergies:

  • further align communities
  • More DAOs holding FEI and paying devs in FEI
  • Decentralized frontend for Tribe products
  • Earn more TOKE

gm! Erik here (ShapeShift founder)

I’ll be voting for this on the ShapeShift side, on any amount up to $10m. I’ve been very impressed with the Rari pools, and looking forward to getting these money markets integrated into the new open source ShapeShift (

Thank you Tribe for your leadership in DAO community development. We’ve been watching and learning from you!


Hi Tribe -

As this has gotten ample support both here and in the ShapeShift community, we’ve moved the proposal to Last Call. In 48 hours we will post a snapshot with an option to approve a token swap whereby each side contributes $2 million, $5 million or $10 million of their token FEI and FOX, respectively. This vote will use approval style rules with the majority option winning (a no option will be included as well). Meanwhile, the ShapeShift community will be voting on pre-approving a token swap of up to $10 million for each DAO.


I’m very supportive of the FOX team, they are all crypto OG’s, shapeshift is a great product, and all of our current collaborations with FOX in LaaS and fuse pools have been successful. However, I voted no because at the current juncture, I don’t think our interests as protocols align enough to warrant a treasury swap.

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Hey TRIBE friends, hope you’re all having the best day ever :slight_smile:

While a TRIBE member myself since genesis, I come to you today on behalf of ShapeShift DAO. In case you haven’t seen it, there is a proposal up currently (fip-69 :wink:) for a FEI/FOX tokenswap of $0, $2M, $5M, or $10M. While $5M was in the lead this morning, the tides have turned and now $0 is currently leading with $2M in second place.

Looking back, we really shouldn’t be surprised. While we followed the governance process and had positive feedback in the forum, we could have done a much better job communicating to the broader community before putting this up for governance, and for this we apologize.

At the time of writing, the proposal still has 26 hours remaining. If the TRIBE community will have us, we’d love to join you for a community AMA tomorrow before the proposal closes to give an overview of ShapeShift and our proposal and to answer any questions that you may have in order to make an informed decision. We could do 11am or 12pm PT (tomorrow is our v2 launch so rather packed :sweat_smile:). If those times don’t work, we’d love to schedule something in the near future.

No matter what happens with this proposal, ShapeShift DAO is excited to continue working with both the TRIBE and RARI communities and to further build upon our relationship by launching a free, open-source, and :soon: decentralized interface for your amazing products which the DAO has already been heavily utilizing itself (FEI, Rari FUSE pools, and the LaaS program with Ondo and FEI).

Thank you TRIBE!

p.s. check out these super early mockups our Product Workstream threw together for a sneak peak of what Rari in the new could look like :eyes: Loading Share Experience


Timing didn’t work out for the AMA this time, but hopefully we can schedule something soon. I promise we won’t put any more proposals up for a tokenswap until we’ve at least had the AMA :wink:

In the meantime, we look forward to further developing our D2D partnership with Turbo :rocket: as well as the Rari Fuse integration on :fox_face: :handshake: :evergreen_tree:

Thank you again TRIBE and congratulations on the merger!! So excited for what’s to come, and lookin forward to hangin in RL with everyone making it to ETHDenver too :partying_face: