Good point. It is not good to talk about guaranteed price floor and compromise an unspecified amount of the PCV.
I think a better approach is to define a specific amount of reserves we will sell $ X mln of ETH to buy FEI: the first day we can offered to buy FEI at 10% discount, the second 7% and last day with 5%. But the defined selling amount would not change. If everything is sold in the first day with discount, we could prepare another selling.
I think the balancer smart pool dutch auction is a better option, but if this one could be implemented earlier maybe it is worth a try.
This is also why time is of the essence while the protocol is more than fully collateralized. Let’s face it 650k ETH was too big too chew at the beginning for the project. If everyone who wants to leave, leave with a 5% haircut now this guarantees a solid financial base to grow on for those who want to stay. However, each passing day is increasing the risk that ETH falls down and things really get ugly.
@brisket I totally agree with this sentiment. with a 5% discount, the more people leave the better for the remaining FEI and TRIBE holders since the PCV will be heavily overcollateralized, which will give a solid foundation for the project to develop alternate use cases and continue to maintain the peg. Time is definitely of the essence as we can’t be sure ETH price is relatively volatile and could tank at any moment.
@Bruno This Dutch auction idea on Balancer is also a good option. The important point is just to do something now before it’s too late.
Every passing day not only increases the risk that ETH falls and puts all of us in a huge hole, it also increases the number of people who become disillusioned with the project. Trust and credibility are core pillars of a stablecoin that FEI is sorely missing right now.
I have the following suggestions: 1. Users need to redeem eth a snapshot of 1/10eth value tribe holdings, for example, 100 eth need snapshot 12,000 tribe holdings, 2. tribe users can share burn fei 3. Buy eth address reward part of fei needs to be locked. When users buy the corresponding value tribe snapshots, they can redeem the above to increase the mobility of tribe. When tribe adds up, it can increase tribal confidence.
LoL. How irresponsible of you to launch a product that doesnt work at all, gather hard earned money of investors. Then ask them to fix it. Dude if you cant fix it , admit that you screwed up and return the money to investors. At least have some balls and honor for this.
Why some people propose 0.95, or 0.9, or 0.85 exit price for FEI? Where do these numbers come from? Why not 0.9314? And some other people are blaming everyone for not reading the whitepaper. I’ve read the whitepaper thoroughly and I don’t mind exiting FEI under current rules. What I do mind is being overrun by bots! System is exploitable! I did not see that coming and nor did the team, it seems. The real solution is to let people beat the bots. After reweight conditions are met, swap batch should open for a certain timeframe. Everyone could sign up for swap after reweight - whales, krill, all together. The system will show burn rate for this batch (depending on batch size). Then sign-up will close and sign-out timeframe will open (for people who feel that burn rate is too high). Then reweight, swap, repeat. Maybe the first most impatient batch will agree on 15% burn rate. This will release a lot of pressure. Next time burn rate will stay at 14% and so on. This solution doesn’t go against whitepaper, doesn’t really change the principles of the system. It’s just a workaround to elliminate exploit and make whales and plebs equal.
Please implement plan 3 as soon as possible and let everyone go out at 0.93-0.95. If there is a sharp drop in ETH, no one will be able to take responsibility
I know team is like sitting on 300m$+ free FEI from genesis,but this project is the biggest fuck up in crypto of all the time,you should close the project and refund all people ETH that we still have in PCV.
You want quick money but now you loss money. Youre crying and want to refund. This is Game. Pls sell all fei then get out. Fei will get 1 usd after you sell all your fei.
To build on this, what are your thoughts on exchanging a portion of the PCV ETH into DAI and then depositing the DAI into Alchemix? This will pull forward the yield that would be earned on Yearn and expedite the process of buying FEI with earnings. It’s also a natural way of diversifying the PCV into a more stable, decentralized asset. It’d require a few more steps than just depositing directly into Yearn.
x% of PCV ETH → Dai → Alchemix vault → alUSD → ETH → buy back Fei
One thing I don’t know is whether or not Alchemix would be able to absorb a chunk of Fei’s PCV.
Of this 2.4B Fei, about 1.32B is in the PCV, and about 83m has been burnt from the reweights, and another 16.5m~ has been burnt from selling, let’s say 100m.
This leaves only 980,000,000~ FEI in circulation that are in the hands of users. The current value of ETH in PCV is almost $1.2b, so we have a collateralization ratio of 1.22~.
Even if they were to buy Fei at a price of $0.95 per Fei at an ETH price of $2,000, and IF everyone sold their Fei for ETH, there would still be $269m or 134.5k ETH in the PCV, which is still more than what the team was originally projecting.
It’s unlikely that all users will sell all of their Fei for ETH also, so this approach would likely leave $300m~$500m+ in PCV while allowing users who want to exit at $0.95 to do so, and alleviate the selling pressure.
There also doesn’t seem to be a real need for $1b+ locked up in PCV so this would give the protocol a more reasonable size to work with also.
Yeah, even with a peg of $1, they would still have $220m~ left in PCV even if all users cashed out their Fei. There would be zero Fei in circulation in user hands, and still they would be above original targets for PCV.
I’d propose this as another option we should take to vote, which is to allow redeeming of Fei at $1 on the App. As shown above, even if ALL Fei in circulation were redeemed, PCV would still have over $200m in ETH, and you can rework everything from there, while also immediately alleviating all sell pressure. This would restore trust and let Fei have a fresh start while still retaining ample PCV.
Note that this favors BOTH Fei and Tribe holders- Tribe is a governance token for a stablecoin, if the stablecoin can’t be pegged to $1, the protocol as a whole suffers. Additionally, Tribe is valued at $1.46, however if Fei restores a $1 peg, it would immediately rise to $1.90~, an instant 30% increase, since Tribe is trading for 1.928 Fei and the liquidity of this pool is several orders of magnitude greater than that of the Tribe-Eth pool (i.e. it would swallow up that liquidity and have it match its own price).
I honestly think this is the best way forward. $Tribe would appreciate… with 200M in PCV and zero liability. All future FEI buyers will have a 200M backstop.
