Hi all - new TRIBE member here and I’m very excited to be a part of this community! I have an idea that I think can add greater utility to FEI as well as increase the PCV over time, please read below:
For assets that are in the PCV (currently ETH / stETH / DPI) allow users to create overcollateralized debt positions and mint FEI against them (as you would in MakerDAO or Liquity) We could charge either a streaming stability fee or a one time mint fee, either would work.
Different collateral types can have different overcollateralization requirements (for example, ETH may allow users collateral ratio to fall to 110% before liquidation, whereas DPI may have a higher liquidation threshold at say ~150%)
Liquidations within the FEI system are where the magic happens. Instead of having keepers pay back the debt associated with an under-collateralized CDP, we can liquidate these CDPs with the PCV itself. If a CDP were to become under-collateralized, the protocol can simply seize the collateral within that CDP and add it to the PCV. After seizing the collateral, the protocol may decide to burn an amount of protocol-owned FEI that is equivalent to the amount of debt outstanding in the just liquidated CDP, or simply keep that extra FEI outstanding and use the newly acquired collateral to support the FEI peg.
Would love to hear thoughts/feedback, thanks!