It’s pretty clear we’re all agreed on the need to achieve and maintain peg as quickly as possible. After all, of what value is a stable coin that cannot maintain it’s peg? Short term priorities should be stability and confidence in my opinion. Considerations about 'protecting the war chest, etc. have to be secondary, in the short term due to the nature of the project.
I think options 3 and 5 seem most likely to achieve peg and stability in the short term while a strategy for long term is devised and implemented over time. Right now, due to the current market sentiment, it is impossible to figure out how FEI will work under normal conditions and thus trying to figure out long term will not be effective.
Finally, I’d strongly recommend improving the LP incentives if we are to have any hope of that pool being successful.
FFT. Creating a meta pool of FEI with 3CRV pool token. It can temporarily help FEI get its peg. If you can additionally incentivise the LPs of the meta pool with TRIBE airdrop (and CRV too if possible), it will create another utility for FEI and we may see a good buy support.
Lets be honest here, if TRIBE did a 6x out the gate and there was no pre swap i.e. we had to compete with each other on Uniswap, youd be asking “why no pre swap” so lets just drop that one and wait for the team and us as a community to make this right over the medium to long term. Its the team we initially trusted as well as the support from their VC backers. That hasnt changed.
Another idea inspired by @nickbtts on discord. People could sign up for the next reweight (like they signed up for preswap). And this big collective FEI-ETH swap transaction is executed first after the reweight, before the bots can enter the game. Everyone gets hit by the same fee. But people should see the fee rate online (fee rate will depend on how many FEI is signed on for swap) and be able to sign out if they see that fee gets too high (preswap becomes oversubscribed).
@nickbtts replied:
I’m not sure if the 0x mesh is redeeming limit orders; the only ones on 0xtracker are routing though external pools. The team could simply deploy a localised version of this which accounts for high slippage, so each user can specify the min amount of eth (or other) they wish returned
But for me that’s a bit too technical ) I’m sure the team could write their own bot which will outrun every other bot (because “team bot” has info about the exact time of reweight). This bot will swap the presubscribed FEI for ETH and distribute ETH between subscribers. Such system would be a more transparent version of auctions proposed by @joey
I like this. So far, it still seems that Option 4 is the best approach we need to deploy in the interim to best resolve this sell pressure on Fei, and stabilize the Protocol. Frequent buybacks can be done right after.
basically, competition. each of the bots is attempting to sell “right after” the reweight but not all of them will succeed, thus they can actually lose money just like any trader. And you can help! Write your own bot to sell FEI right after reweight occurs. Fight back, comrades.
One of the core issues here is that FEI is not attractive enough, so there is no buying power. Integrating FEI on defi platforms will change that but it may take a long time until those integrations happen. The burn fees are extremely high and people are still selling. Why not use the fees to create an incentive to hold fei? Instead of burning the fei collect all burn penalties and airdrop them on fei holders. I think we need more of these stabilizing mechanisms as the DI are currently not working.
Another problem is the lack of arbitraging to bring the price up. How about implementing an arbitrageur that uses part of the PCV as capital and airdrops its profits on fei holders?
