[Proposal] Simplified Undo with no edge cases

I am writing this proposal that is my best interpretation of @joey 's recent comments.

It is clear from the team’s comments regarding the snapshot vote, the best step forward is to find a way to get back to the peg. To do that, we need to relieve sell pressure and/or reweight. This will create utility for FEI as it makes integrations feasible.

Unfortunately it seems the first proposal was too favorable to FEI holders relative to TRIBE holders. In light of Joey’s comments about keeping implementation simple and not having to deal with many edge cases, but liking the “Undo Proposal” in spirit, here is simplified proposal.

For every 1 ETH committed to genesis, participants received:


Allow a redemption in this ratio, with no edge cases to deal with. For every 156.437 TRIBE + 2037.768 FEI redeemed, the redeemer receives back 1 ETH. Anyone can redeem, including people who did not participate in genesis. This simplifies the implementation significantly.

This is significant concession relative to the first vote, which was 56%-44% before the team voted No Change. This means it would have passed if the team voted the other way. Hopefully these tweaks make it agreeable to enough people to proceed.

What happens with the redeemed TRIBE can be decided by the DAO, but I reckon a good use of it would be to distribute it to TRIBE/FEI holders who do not redeem. The specifics of that need to be discussed; perhaps weighting it towards pre-swappers is most fair. Open to suggestions.

This proposal has many pros in line with the long-term success of the protocol:
+gives fast money an exit without any profit, and doesn’t leave a bad stain on the project. Great for optics long-term. Reduces the bad taste of people, retains them as potential FEI holders in the future.
+relieves significant sell pressure below the peg, helping achieve the peg in the near future
+makes concessions to TRIBE holders who want to stick around for the long-term and see this project flourish, while flushing out the participants who have no intention to stick around long-term or add any value (The TRIBE will be united and strong)
+allows for a simple implementation, which helps with both safety and creates an expedient option for many. This is helpful as all will be less exposed to ETH volatility.

The only downside is that the PCV will be reduced; however, with reweights that is inevitable and this proposal strikes a happy medium that compensates people who stick around. Reminder that the protocol is still significantly overcollateralized, and this proposal will increase the collateralization ratio, making Fei Protocol even healthier.

There are of course people out there who have traded FEI/ETH FEI/TRIBE TRIBE/ETH etc, and therefore do not have the proper ratio to fully redeem even if they participated in genesis. There are also people who have purchased FEI or TRIBE post-genesis. In these cases, they can adjust their holdings on market into significant liquidity if they so choose. They can partially redeem what they do have. If not, they can stick around, receive some of the redeemed TRIBE, and see what happens with reweights.

I’m open to suggestions on some ways to tweak this, and on what to do with redeemed TRIBE.


This is an awesome Idea that I support fully.


I don’t think there’s enough ETH in the PCV to accomplish this?

If this was passed, the price of 156.437 TRIBE + 2037.768 FEI would get arbed to 1 ETH.

There will be a rush to redeem everything and the leftover TRIBE and FEI will be worthless.

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There is enough ETH.

You are correct that the price would rise accordingly. I don’t see anything wrong with that. And the team can mitigate the effect of this massively by removing the liquidity from Uniswap before putting it to a vote, or before publicly supporting this concept.

This is a suicidal act, I disagree


Misleading as “No change” was leading at the time of team vote. It was not down 56-44%, as you’ve stated. Facts are not malleable to support one case over another.

(I am not stating an opinion one way or the other re: your proposal, FYI, just disagree with the “fact” above)

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I did not state it was down. You added that yourself. Here is the quotation:

“This is significant concession relative to the first vote, which was 56%-44% before the team voted No Change . This means it would have passed if the team voted the other way.”

As of now this is still true. The team voted 20MM votes. The margin of victory is < 40MM, and was even closer back when I posted than it is now; therefore a vote on $0.90 or $1.00 by the team would have resulted in No Change not winning as the vote currently stands.

If this is allowed for non genesis wallets then how do we deal with arbitrage? Example people buying in market as soon news hits and redeeming for higher value of genesis? What am I missing? How is this undo?

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This would happen from genesis wallets who already sold as well, so it’s not like only allowing genesis participants would help address this. Joey also specifically mentioned not wanting to deal with these types of edge cases.

In reality, if this was put to a vote, you don’t know if it’s going to pass until it actually does, meaning the price would reflect the probability of it passing over time and eventually converge to ~fair. Those who buy and sell will be effectively trading with each other on the final result. That’s fine and there’s nothing wrong with that. Even if it passes a snapshot vote, it still needs to pass a vote onchain.

The best way to limit the leakage to this is for the team to remove the Uniswap liquidity, but I’ll let them comment on their path forward if this or something like it is put to a snapshot vote.

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This idea sounds reasonable, I would stress the need to make sure genesis pre-swappers are rewarded generously (ratioed according to pre-swap percentage, with 100% pre-swappers receiving the most Tribe ) as they are the most committed to the project and also had to take the biggest hit.


Awesome, i totally agree with this

nice idea I would vote for it

Simpler implementation. Lets put up a proposal for this, and vote to get it done quick.

There is no undo. You must pay fee if you wanna get out this game. This is a game.

This doesn’t include an incentive for TRIBE to hold.

This sounds like it might require small FEI holders to buy TRIBE which incurs fees and gas in order to sell.

Dont like it, only genesis members can participate. And undo exectly what you received on genesis. 100% Fei then u return 100% Fei, if you preswapped to Tribe u return 100% Tribe.

Also, assuming that this stabilizes FEI and reduces the selling pressure, wouldn’t the peg for FEI go back to $1. What’s the point of all the redemption conditions then?

First of all, I am sorry for my poor English.
Much of the selling pressure comes from those who want to get a quick return by getting a stablecoin Fei and selling immediately after receiving a bonus Tribe. They want to leave now . If they haven’t participated, people received a much more Tribe.
Those who want to leave can return the exact number of Fei and Tribe they received in the first place( and get a small penalty or not). And those Tribe can only be counted correctly if they only go into the wallets of those who have participated in Genesis among the remaining people.


I support this proposal also.

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I love this idea, but what would stop someone from getting there eth back and then rebuying the tribe At a lowwer price?