Pause FEI purchases after Tuesday announcement and potential vote

Pursuant to earlier conversations with @khbw @tuzi@defi3 @kevin123:

Seeing that after the announcement of fip-1, there was massive volatility in fei, it is proposed that direct FEI purchases through the bonding curve should be paused before the announcement, and be resumed either after the vote, or when the first reweight goes through.

This will stop arbitrage buying through the official portal, hence stop the inflationary minting of FEI for the time being. After and during the announcement, any speculative buying directly through the bonding curve will increase PCV at a lesser rate than circulating fei, which is deleterious for the collateral ratio.

In the mean time, secondary markets will go on trading and still allow for price discovery; during this process, any profit earned by speculators is a result of risk adjusted decision of some other holder’s decision to sell. After reweight, the bonding curve price and secondary market price will quick converge, and save the PCV massive amounts of capital.

Such practices are also in line with publicly traded companies. If proven successful, this practice can be extended as standard practice around every major announcement/vote that will cause volatile price swings.