Let's get a stop gap vote: Invest the PCV in a stablecoin + yield generating defi protocol

The last few days have been tough, and probably not how any of us expected. Right now, I and many folks I’m spoken with believe the biggest risk to all stakeholders is a decline in the value of the PCV. We believe this is important because almost any course of action that will stabilize the protocol will require maintenance of sufficient PCV.

In addition, we all believe that protecting the value of the PCV helps all stakeholders, since it guarantees the backing for Fei and gives a warchest to the team and Tribe holders to move forward and succeed.

Put differently, maintaining (and increasing the PVC) benefit all stakeholders:

Fei - Guarantees backing with collateral

Tribe - Provides a warchest of residual PCV to make the protocol a success

Team - Provides funds to survive and make the protocol a success

Moreover, each of these benefits is enhanced if we can increase the value of the PCV relative to the number of Fei outstanding.

There is one sure way to do this: swap the ETH in the PCV to Dai and invest in Yearn (or another yield-bearing product).

Moreover, this action is quick and easy!

Can we please tee up votes to (1) re-invest the ETH in the PCV into a stable coin and (2) to re-invest that stable coin in a yield generating protocol?

Nearly everyone I have spoken to strongly believes this easy action will benefit every significant stakeholder.

We can then address how to improve the mechanics of Fei and potentially reward long term holders.


I would propose a move to half stable coins / half ETH as a temporary measure until we can get a more cohesive strategy together. But honestly I’m not sure how much PCV is free floating from ETH liquidity pools.

1 Like

You’re right. You’d have to reduce the ETH from the LP pools, which would sacrifice some liquidity. Without running the math, you can do this a lot without giving up much liquidity because the tails are so capital inefficient.

For allocation. Strongly suggest at least 100% of FEI outstanding are collateralized by a stable like Dai since FEI is stable/denominated “against” the USD.

Beyond that amount, doesn’t matter at all. Goal is just to insure (and prove to the market) that the money is there!

1 Like

There is no need to opt out eth (upside) volatility in the middle of a bull market,it wouldn’t be so smart , you have to embrace asymmetric risk and buy some put options instead,(with part of the PCV) as a protection against (downside) ETH volatility…

Instead if you want to earn yield with the ETH in the PCV you can do it straight on bancor without swapping ETH …you can also buy some coverage on Nexus mutual in order to eliminate additional risk layer.


I refused the offer.
Taking a portion of the money to gain revenue when a large number of people want to exit is a resolution that looks tempting but actually destroys the project.

Assuming one could sell fei now for $0.95, how many people do you think would continue to hold?
This sell-off will keep FEI from returning to $1 for a long, long, long time.
What’s the point of this stablecoin project when FEI can’t get back to $1?

No one will use a discounted stablecoin.

Also, if PCV can’t bring FEI back to $1, it doesn’t matter what asset PCV is, or how much it’s worth, it’s meaningless.

It is hoped that when the price of ETH is high, PCV, will be launched to bring the price back to $1, so that those who want to escape can buy back ETH, at a high price so that pcv can achieve overmortgage, otherwise the overmortgage rate is not enough, and when the market fluctuates and ETH plummets, PCV will not have enough funds for overmortgage.

This is NOT true. The math proves that FEI is overcollateralized to $1.23. That means 100% of people can exit at $1.00 and the PCV will STILL have $200-300m.

1 Like

the fact is fei peged $0.8, PCV don’t work.
and you can’t quit at $1.23, because core team need to protect the profit of Investment Institutions.
they don’t want reduce PCV.

FEI is NOT pegged to $0.80, that is just what the market is willing to buy/sell for right now. Your understanding is wrong. They CAN peg to $1.00 by burning PCV and let EVERYBODY exit, and STILL have $200-300m in PCV.

1 Like

The market is undervaluing FEI right now because of the fudged launch.

I understand all your points, but the fact is that there is no way you can exit at $1.
Because from their recent announcements and statements, the core team does not want to lower the PCV, and there is a contradiction between that and a $1 exit.

Yes, if the demand for FEI increases and supply is static, then price will increase. We don’t want to lower PCV more than necessary. The reweight mechanic has to be tweaked to prevent drain of PCV. You want the market and burn mechanics to shrink the FEI supply as much as possible, not the PCV. PCV acts as the buyer of last resort.