I feel like it’s still too early to use the genesis event as any indication as to what the burn/reweight dynamic should or shouldn’t be. Based on observing the Discord, it seems like immediate dumpers skewed the operation.
Maybe a “rapid dump” black swan plan makes sense to consider, but otherwise I’d like to see FEI run as intended for a bit to see what happens (especially after the first reweight).
Definitely a good idea.
It will give another function to TRIBE which will be another reason to hold and give it extra value.
If the system evaluates in a way that TRIBE holders have an option to preswap which will be included and executed in the reweighting atomic transaction - up to a certain amount which should be calculated/capped taking into account the PCV and the holdings of each user -, the protocol can benefit from this and will also favor long time supporters.
You can allow a user to specify a max return, like a limit order, executed either on the 0x mesh in normal trading or by the protocol during a reweight. If the total committed for pre-swap means a burn greater than specified slippage, the FEI is returned.
I think this is great. Can we incentivize people to hold FEI by deploying the PCV asap into something that generates a high yield? This yield goes to holders of FEI and or TRIBE?
In order to prevent the "front running " from a bot, i think we can adjust to random reweight. For example, target of one reweight cycle (based on block time or any other period) is $0.97 (± 0.01). the action will be occured during this range cycle randomly (based on hash tx from the ethereum chain). If there is non-bot tx broadcast, they will lose the chance to take arbitrage.
Therefore, we need to decrease the duration of reweight and add random signal. i like an enhancement version of 3
I think time is of the essence. You cannot ‘wait and see’ what happens for a stablecoin that’s supposed to be maintaining the peg. That just destroys confidence, which you can see by the willingness of participants to sell FEI at massive discounts up to 30%.
I think the protocol should start instituting frequent re-weights (every hour if necessary) to clear the market, especially while the ETH price is trading higher than the genesis price. This allows the protocol to retain value while also restoring the peg and letting people exit if they want.
The risk of waiting too long is if the ETH price drops, FEI will de-peg and you may lack the collateral to even restore it once the collateralization rate drops below 1.
All these reweight choices are good ideas. But most important is finding use cases for FEI. If you look at DAI and other good stables it is used everywhere so easier to hold the peg. No use everyone wants to dump. All we need is one major exchange or YFI or any great lending platform to use FEI. Or we could have our own lending with stables. People borrow USDC or TETHER or any well known stable using FEI. And fees payed in FEI. Just we need more uses for it right now people have no reason to hold.
Hello, I accidentally transferred the coin to your contract address. Can I have it back, please? Ethereum Transaction Hash (Txhash) Details | Etherscan
The peg implementation is good. The problem was allowing “the world” to purchase at no cap PLUS the airdrop. So this created a huge sell pressure. If we only raised about 50,000 ETH, the pressure would have been a lot manageable and the peg would have worked quite fine. Fei Labs, shot themselves on the foot in terms of their reputation.
Yes. But DAI didn’t raise $1.3B for PVC on day 1. The problem with Fei is raising so much and giving freebie Tribe. So people came in for the freebies, dumped and want out. Over 70% of Fei holders want to dump it. DAI never had this dilemma.
This is a great solution at this stage.
Could reversing the buy reward system help speed up the buying demand? Eg start high and reduce it every hour until the reweight.
Another idea to encourage long term holders, the longer you hold FEI the less burn on sale.
How to make Fei valuable?
Use ETH owned by the protocol as staking reward for period of time (says 3 month)
Stake Fei to get ETH (or some valuable assets). This can reduce selling pressure and improve buying pressure.
In the meantime find ways to add more use cases to FEI so it will be able to hit the pegging.
I think right now is about protecting the reputation of the project.
I think that one of the solutions is to give a good case use of fei so that people hold fei for longterm. An example would be to have something similar to sushiswap, allow people to swap using the protocol and distribute a portion of the fees to tribe and fei holders.
any update on path forward? I believe strong direction from the core-team to the community is needed.
also, Id be keen to learn what our investors are advising at this stage?
I propose to fund some defi projects to allow them to obtain funds and users, and to help Fei solve actual use scenarios
Joey, your greatest asset is the $1.2 B in PCV. The current situation is a gift and a curse. The curse being obviously the greater crypto community sees this as a massive failure. The gift, no one can exit thus locking in the PCV. I hope you make the right decisions, short term alleviation of the situation may be good for some but the overall sentiment will be heavily negative and you will lose PCV.