FIP-XX: Seed $1M FEI to Impermax for Leveraged FEI-TRIBE Farming
Status: Stage-0 Draft
Impermax is working on creating a Uniswap V2 FEI-TRIBE leveraged farming pool. This would allow FEI-TRIBE stakers to 5x their APYs through leveraged farming. Impermax would auto-stake the new TribalChief staking contract and auto-compound. This proposal seeks to seed $1M in FEI to Impermax so that users can borrow FEI to increase their staking rewards.
With the new TribalChief staking rewards system, FEI-TRIBE LP stakers have had their APYs reduced. This proposal tries to give those stakers the option to take on more risk to increase their APYs to the same level it was before or higher. Additionally, it allows holders of TRIBE to lend out their TRIBE in a way that is beneficial for the TRIBE price. Stakers looking to leverage will be increasing demand for TRIBE and thus have positive pressure on the TRIBE price. Users will purchase TRIBE to earn better APYs than offered in Fei-Rari Fuse pool by lending the TRIBE out in Impermax.
Once the Uniswap V2 FEI-TRIBE pair is listed on Impermax, users will be able to lend FEI and/or TRIBE to FEI-TRIBE LP holders. Lending on Impermax is a set and forget action. Lenders earn the interest paid by the borrowers which is autcompounded to the lenders’ balance.
FEI-TRIBE LP holders can deposit their LP tokens on Impermax to be able to borrow FEI and/or TRIBE. On its end, Impermax deposits all the LP tokens that it holds as collateral on the TribalChief staking pool, and automatically compounds the reward to the LP tokens.
Once a liquidity provider has deposited LP tokens on Impermax, he will be able to use the “leverage” option, which will:
- borrow FEI and TRIBE;
- supply FEI and TRIBE as liquidity to Uniswap to obtain more FEI-TRIBE LP;
- deposit FEI-TRIBE LP as collateral to Impermax.
By leveraging, LP holders will be able to multiply the yield that they earn from trading fees and staking rewards. Initially, we expect users to be able to achieve leverages up to 5x in this way.
If this proposal is passed, Impermax will give an IMX reward to incevize FEI and TRIBE borrowing in order to kickstart the pool.
Impermax (https://www.impermax.finance/) is a leveraged yield farming lending protocol live on Ethereum mainnet since March of 2021. It allows lending and borrowing liquidity using LP tokens as collateral. LP tokens holders can borrow the underlying assets of their LP tokens from Impermax to leverage their position. Thanks to its unique collateralization model design, leveraged yield farming can be done on Impermax with the minimal liquidation risk / leverage ratio.
User guide: HERE
- Core audit by Certik
- IMX audit by Certik
- Core audit by Cyber Unit
- Periphery audit by Cyber Unit
- Oracle audit by Cyber Unit
- Yes, Seed Impermax TRIBE-FEI Pool with $1M FEI
- No, Do Not Seed Impermax TRIBE-FEI Pool with $1M FEI