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.