SBF yyds
but we need more defi support fei！
Is there anything that prevents a frontrunner to buy with rewards just before the reweight and sell immediately after, see sandwich attacks? If not the whole reweight mechanism is badly broken.
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Capping the burn and mint % to something reasonable like 2-5% will help make the FEI-ETH uniswap price closer to the secondary market price, which makes oracles more accurate for integrations and doesn’t punish selling as severely. It would also make reweights occur faster when further below the peg as the reward can catch up to the burn.
It is good for interations with AAVE compound. The maximum loss can be predicted when liquidation occurs.
I’ve seen a few people mention voting on the 5% loss proposal. Just want to make sure if we do that, it’s an option for people to exit at .95, and NOT a 5% cap on burn, which will just cause the price of fei to lower correspondingly.
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These are not good options. You are focussing on fixing the symptoms and not addressing the root cause. The main root cause is the valuation of the Tribe tokens. $1.3B were raised but only 30% were preswaped to Tribe. At the moment tribe has very little value to the speculators; however, many preswapped investors are really upset since tribe is only at $2. The original Tribe FDV/PCV and circulating /PCV approximates tribe value to be $3.32. May I suggest that you open up the war chest of ETH and start buying Tribe tokes until it goes to $4.65 (this is assumption of 50% preswap at $1.3B calculation)? When Tribe goes up, people will keep tribe and fei tokens to provide liquidity to get more tribe tokens. Give the speculators a good reasons to keep their fei and tribe tokens. Please don’t accommodate the sellers, we want to encourage the hodlers.
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Please create option 6. Use ETH to buy Tribe tokens to address the real root cause (low preswap of 30% instead of 50%). Don’t accommodate the sellers but give them a reason to hold onto their fei and tribe tokens.
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Hmm, I don’t think tribe token price is the root cause. The only problem about Tribe is it makes crypto degen getting rekt. Tribe is the governance token and it doesn’t have any expected price.
Does the protocol have a “war chest” that can be used to buy TRIBE? If eth is used to buy tribe, the price would go up, therefore inviting the interest of more buyers while at the same time rewarding the holders/investors. That should also have a balancing effect on Fei and the whole thing could get back on track. P.S. I still believe in the protocol and think that the investors would do just fine although in a slightly longer run that initially anticipated. Hang on to your Tribe folks!
Agree! I just posted the same suggestion and then saw your post
Yes, and this isn’t the place for that kind of question. This thread is about the FEI price.
This doesn’t make sense to me. The end scenario would be a multitude of bots competing to buy FEI when it was below PEG. The bots would naturally in an attempt to out out compete one another start buying on smaller and smaller dips until eventually the bot that was willing to accept the least amount, i.e the bot that purchased closet to peg, would profit. Essentially a race to 0 profit. Or in other words a race to stability.
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3 all the way. By de-risking arbitrage you will achieve stability. You don’t need integrations to achieve demand. By it’s nature because it’s completely decentralized people will want to use it over other options. All you need to do is prove it can maintain peg. arbitragers will over time buy closer and closer to peg to try and realize profit.
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let’s consider longer term solutions and use the protocol as it was intended - we could start using the PCV in a more effective way? we should use a fraction of the PCV ETH, put it in a Yearn Vault, then buy discounted FEI with the earnings, this will start moving the peg up, while also letting the community and TRIBE holders that there is a strong value and intent with the protocol
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Option 5, speed weight
Theres a lot of speculation actually i wonder if the treasury should be used to fund some rigorous crypto economic analysis to review the data and suggest evidence based tweaks to the incentive / penalty mechanism. Fundamentally i think the direct incentives is the answer it is how they flex that needs tweaking. Equally i think the reweight should never really be needed if the direct incentives are working properly
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That’s a great idea, I also suggested something similar in my post above. Let’s put this to a DAO vote. Team?
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Yeah spot on. Im not a fan of using reweights. It puts the penalty on the community instead of the seller. Against the whole principles of the project and creates a direct incentive to sell fei!
How about we refund anyone who wants to exit with a penalty (10%), burn FEI and redistribute the original TRIBE airdrops to HODLERs with a 6-month vesting period.
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Force reweights, people should be able to sell. Locking people in with massive penalties is totally against the ethos of DEFI
That is a bad idea. TRIBE token is not worth more than $1 (1B MCap) until the system starts making some money/impact. Buying TRIBE above $1 = burning money.
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