FIP-XX: Add Volt to the Tribe Convex Pool

Proposals
#1

Status: Draft
Author(s): @Fishy

Summary
Add VOLT to the Tribe Convex Pool with 80% LTV as non-borrowable collateral.

Motivation
The VOLT DAO can use minted VOLT to borrow other stablecoins and exchange them for higher yield ones, allowing it to earn extra yield by swapping stablecoin risk. Adding VOLT as non-borrowable collateral can increase the borrowing rates of FEI, FRAX, UST, and other stable assets within the pool. This generates additional income for lenders within the pool, such as the Tribe DAO. Adding VOLT as collateral is of low risk, as VOLT will be a stable asset fully backed by FEI and other stable assets.

Specification
Add VOLT to the Tribe Convex Pool with 80% LTV as non-borrowable collateral, using the VOLT system price oracle.

3 Likes
#2

Sending straight to 48h last call as I assume this will be non-controversial.

1 Like
#3

it makes sense for VOLT to be included in many tribe products. however I would like to see some lindy on VOLT before giving it a CF, especially a high CF like 80%. when VOLT launches and has some usage it will become low risk but I don think we’re quite there yet

2 Likes
#4

Tyvm for posting this @fishy, keen to discuss the plan for onboarding though we can probably move off of last call and leave time to discuss.

Enabling VOLT as collateral will add utility for holders as well as enable DAO borrowing strategies.

@storm what are your thoughts on timeline for a modest initial CF like 30%?

We are also exploring a “VOLT DAO borrow pool” with the DAO as the only borrower and fixed rate IRMs.

#5

Moving off last call. I think limiters on this proposal are

  1. undeveloped yield strategy for VOLT
  2. Maturity of VOLT system

The fixed rate system is probably better for our purposes anyways, and ensures that pool risk is contained.

1 Like
#6

I’m in agreement with @storm Can the snapshot provide various CF options - 60, 70, 80%?

1 Like
#7

Perhaps rather than voting on CF, we can discuss and then vote on an appropriate threshold for when onboarding could occur at a modest starting CF, and whether to authorize OA to adjust this up gradually over time.

#8

seems ok to put it in the convex pool now with a 0% LTV

then perhaps something like letting VOLT demonstrate 1 or 2 successful monthly oracle updates for a 50% LTV

this also seems like a great idea that can be pursued in parallel

2 Likes
#9

I’m a big Volt supporter and would love to see Volt added to the Convex pool and many others as collateral and a borrowable asset. I think this proposal is just slightly premature. I would want to see Volt launch first and then integrate into a number of Fuse pools after a few weeks.

4 Likes