FIP-XX: Change TRIBE LTV in Rari Fuse Pool to 80%

Proposals
1

Proposal: FIP-XX

Status: Draft

Summary

Change the LTV (Loan to Value) ratio on TRIBE on Rari Capital Fuse Pool #8 “FeiRari” to 80%, from 65%.

Motivation

The Rari Capital Fuse pool has proven to be an extremely useful tool for TRIBE holders looking to leverage their TRIBE holdings to purchase more TRIBE, short ETH/DAI/FEI, or invest their borrowed funds elsewhere. This has been proven by 112M worth of TRIBE being deposited into the Rari pool. However, TRIBE has a 15% lower LTV ratio than ETH, DAI, and FEI. Increasing this ratio to 80% provides additional utility to TRIBE holders and increases TRIBE buy pressure, offsetting LM (liquidity mining) costs.

Specification

Change the LTV ratio on TRIBE in Rari Capital Fuse Pool #8 to 80%.

2 Likes
2

In support :slight_smile: even with a tighter margin for liquidations, I think we’ll do fine, given the deep FEI-TRIBE liquidity thanks to LM and Fei Labs’ timelock.