FYI for all. Just ran these numbers. Based on $ETH at $2,000, the collateralization ratio is 1.37, enough to withstand a ~27% drop in ETH price.
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No, TRIBE’S main value prop is the PCV. This wrecks TRIBE pre-swappers, and dumps all the future risk on them while pulling liquidity and capital out of the protocol. The protocol should increase reweights or market buys, beginning at current market price and incentivize staking of FEI to pull supply off market.
Tribe’s value come from the success of this project.
FEI holds the most legitimate claim to the ETH as it didn’t have the upside (TRIBE did) similar to stocks / bonds. TRIBE holds the actual governance ability over the PCV.
This is the real issue no one is talking about yet - there will likely have to be a win / win from both sides.
it’s hard to argue with that)
I do want to call to attention this great thread by the FRAX founder. It’s a good take @joey and on topic.
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How did tribe get upside with preswap price of 3.22. 
I swapped to stake and vote and get punished . And fei dumpers don’t want to hear it . Only want peg no matter how it hurts tribe or the protocol to do it . Fei holders wanted free tribe to dump .
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The value of TRIBE came from being allowed to govern the stablecoin. You can’t both have protection from the downside and exposure to the upside. It was intended to be split with FEI insured to the downside in exchange for TRIBE getting exposure to the upside.
I think we have differing opinions, so it can be decided via voting. If that’s really true then naturally Tribe holders would not vote for it. However I’m of the mind that it would help Tribe (and it would also give it an immediate 30% price increase).
Reweights also affect and eat away at PCV. 30k ETH was lost between the last two reweights, and about $41.5m Fei was burnt each time. If we did 10 reweights (or more) that’s not much different from the above, except it would give bots an advantage and also many people would get burnt, while bots won’t. If reweights were more frequent, this would happen within the span of a few days.
I’m good with either approach as long as it brings us back to peg, but still think it’s a viable option worth voting for.
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The genesis showed that the distribution system is inseparable from the protocol itself. We should not strive to reach the $1 peg in the short term but aim for the price which takes into account the TRIBE airdrop ($0.90?). The target price on reweight should be set to that price.
Second, the sell penalty is awkward and it should be set to 0 as it is obviously not working and it complicates the system and trading. The faith is ETH (PCV) should be enough to prevent the FEI price to drop much below $1 in the same way as the faith in redeeming the DAI collateral is enough from keeping DAI above $1.
TL;DR
- The way genesis was designed made it impossible for FEI to reach the $1 peg
- We should set the new peg ($0.8 to $0.9)
- Drop the sell burn rate
- Have faith that PCV/FEI will in the long term be much greater than 1 (possibly always >1)
There are probably ways to make reweighting more efficient but it is not as important as the things mentioned above.
Has anyone run the collateralization ratio after all the recent reweight/selling/buying? If someone can post instructions on how to calculate it, I can do regular updates on the discord.
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Reweight and direct incentive should work, the APY is sexy enough but the problem is cost (gas fee) is too high for normal investors.
Lower the cost is essential, no matter it’s a fund, a pool or even move the PVC or direct incentive on to layer 2 or other low gas fee blockchains.
While people start to join direct incentive, FEI would start stabilized.
Contract addresses (see docs) :
- FEI token :
0x956f47f50a910163d8bf957cf5846d573e7f87ca - Uniswap-v2 FEI-TRIBE pool :
0x9928e4046d7c6513326ccea028cd3e7a91c7590a - Uniswap-v2 FEI-ETH pool :
0x94b0a3d511b6ecdb17ebf877278ab030acb0a878 - Protocol EthUniswapDeposit :
0x9b0C6299D08fe823f2C0598d97A1141507e4ad86
Now, how to compute collateral ratio :
- Uniswap-v2 FEI-ETH pool tokens totalSupply() =
24 158 393 - Uniswap-v2 FEI-ETH pool tokens owned by protocol’s
EthUniswapDeposit=24 153 142
So, protocol owns 99.98% of the FEI-ETH uniswap liquidity
Uniswap-v2 FEI-ETH pool balances :
- FEI =
1 233 820 576 - ETH =
474 099
So, protocol owns :
- 99.98% of
474 099ETH =473 996ETH - 99.98% of
1 233 820 576FEI =1 233 552 404FEI
The FEI token totalSupply() is 2 041 426 913.
So, remaining FEI circulating supply not owned by the protocol = 2 041 426 913 - 1 233 552 404 = 807 874 509 FEI.
At 2000 USD/ETH, the protocol owns 947 992 000 USD.
That’s 1.173 USD PCV per circulating FEI => the protocol is currently 17.3% overcollateralized.
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well you forget FEI own by FEI-TRIBE-lp hold by protocol.
These tokens belong to Fei Labs under lockup, see the Medium post :
The liquidity (Uniswap v2 LP tokens) for this IDO are time-locked and owned collectively by the Fei Core Team and investors.
So they should not be excluded from the “circulating supply”. Eventually Fei Labs will unlock and sell these tokens (or the underlying FEI / TRIBE) to cover payrolls etc. Or they will hold forever, or whatever. But anyway it’s their decision, not the community’s.
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Shouldn’t you’re 807,874,509 FEI be converted to USD as well. So @ .763 it’s 616,144,075 USD? Which makes the ratio 154%?
Keeping it in FEI though is useful as well. Proves out that even when FEI get’s pegged to 1 USD it’s still 17% overcollateralized.
I support 1 and 3 and hope to implement it as soon as possible
i am supporting 3 !!! we came in genesis because we konw the fei will stay in 1 by pcv, what fei 's most imortant function, it is pcv , but what it can do if there pcv not work???
we should reweight every 3 hours if it is below 0.99 or reweight if burn rate is hit 5%, we have 120 Collateralization Ratio. this will help all people built confidence , and the burn fei can reward to pcv or the tribe holders , or tribe stake can get that reward
just use 333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333
I don’t want to lose my hard-earned funds with mere selfishness. Airdrops to pre-swap users is a waste of money. You have to spend money on building an ecosystem. We need to reward liquidity providers and those who staking.
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