Status: Draft
Author(s): @Fishy
Summary
Remove TRIBE emissions on the FEI-USDC Uniswap v3 LP. Utilize one of the solutions below to solve the USDC->FEI pipeline problem.
Motivation
The FEI-USDC pool on Uniswap v3 is inefficient for its purpose and consumes several million TRIBE of rewards each year, an absurdly high amount for its value. FEI-USDC in its current form only serves to allow USDC holders to cheaply convert their USDC into FEI, which according to the 1192x dominance of FEI in the pool (at time of posting) isn’t even a common occurrence.
An easy replacement is a router through MakerDAO’s USDC-DAI PSM which then routes through our current DAI PSM. While this increases gas fees as well as PSM fees, the current solution isn’t worth the millions of dollars of emissions we are paying for this service.
Another possible solution is moving the LP position to FEI-USDC 5 bps, which is used much more frequently at over 22x the 7d volume of the 1 bps version. This pool is also far more balanced than 1 bps, with only a slight FEI dominance compared to USDC.
This problem also may be solved in a few days by our Curve pool, as the A factor is ramping up to allow lower slippage swaps.
Specification
A specification is subject to discussion in the thread below.