FEI accumulated RAI in its treasury and it’s deploying it in Aave v2 and Fuse. There is a better way to use this RAI in combination with FEI with the help of a FEI<>RAI co-incentivized Balancer Metastable pool.
FEI has been using concentrated liquidity pools extensively over the last months and has also been diversifying the underlying collateral held in the PCV. FEI DAO also accumulated RAI in its treasury and it’s currently lending RAI in Aave v2 and Fuse.
We (the Reflexer team) believe there is a better way for FEI to achieve multiple goals at once, namely:
- Further deepen FEI liquidity
- Diversify the collateral base even more using RAI
- Accrue more PCV revenue from RAI held in treasury via RAI<>FEI trading fees
We propose the following solution: launch a Balancer v2 Metastable pool with FEI & RAI and co-incentivize it together with the Reflexer community. Furthermore, we (Reflexer) can post a proposal on the Balancer forum to gauge interest for allocating BAL incentives to our pool.
Reflexer is open to incentivize a FEI<>RAI Metastable pool with up to 20 FLX per day, assuming the FEI community would be open to match these incentives.
FEI can deploy its curent RAI treasury in the Metastable pool or take advantage of the recent Curve<>RAI integration and source more RAI collateral which can be separately deployed in Balancer. This way, FEI would deepen its liquidity, as well as make the collaboration between our projects even stronger.
- FEI and RAI communities discuss this proposal over the next 1-2 weeks
- Reach out to Balancer and post a proposal on their forum about co-incentivizing the FEI<>RAI pool with BAL