A plan like this makes sense to me. Simply put, we should vote on a single solution that uses math to set things right for both FEI and TRIBE holders that participated in Genesis. Coming up with an algorithmic solution here would show the genius of the team, and set the right precedent for smart, algo-based improvements to the peg in the future!
Here’s my alternative proposal, using yours as a starting point (disclosure: I did not pre-swap but hold more TRIBE than FEI currently).
Step #1: FEI Redemption at $0.90, for 48 hour period
- Holders can wait until the FEI protocol is stabilized at $1 peg and redeem then. If they do not want to wait, they can pay for the time value of their money and exit early at 10% discount
- Genesis participants received TRIBE airdrop that has real dollar value. Combined value at $0.90 FEI and current TRIBE value still exceeds or is close to dollar value of ETH at time of genesis. TRIBE value should not be ignored as part of this process
Step #2: $0.10 for every FEI redeemed from PCV used to buy TRIBE off market
- TRIBE holders are hurt by the people exiting FEI.
- People will exit TRIBE into FEI initially to close gap between market FEI price and Redemption price (though TRIBE will possibly rebound)
- This can offset any downward price moves in the short term
- TRIBE allocation to genesis backers was heavily diluted by large amount of participants. Pre-swappers will be disproportionately hit by Redemption event
- $0.10 is the difference between $1.00 peg and the $0.90 Redemption price
Step #3: Restabilize protocol
Step #4: Airdrop TRIBE accumulated in Step 2 to HODLers
- This could be distributed in a few manners, but I think simplest is TRIBE holders and volume at the date and time that Redemption ends.
Hopefully this will buoy all backers’ value, whether you have gone heavy into FEI or TRIBE. I think the most important point is that the team’s goal is to let all users exit FEI at $1 as that is the protocol’s design. Achieving the peg in a way that will sustain ensures value of the protocol and TRIBE long-term, so all backers are aligned there. Anyone that wants to exit FEI sooner should be expected to pay for that.
1 Like
You should have known before what you invest in…
Next time read the docs and the risks associated with the position you take.
I will vote against any proposal that solely benefit the people that want to exit
4 Likes
Where/how do we vote?
I invested in a system designed to keep FEI = $1.00. FEI is supposed to be MUCH lower risk than TRIBE. It sounds like you’re the 1 that doesn’t know what they invested in and now want to penalize FEI holders. $1.00 redemption is the best choice for long-term trust in the protocol.
At 7pm EST (3.5 hours from now) at: Snapshot
2 Likes
Last week before the Genesis sale, I made an assumption that I don’t need to add my ignorant commentary for two reasons; There was so much noise on Discord & frankly the FEI team was way smarter than I was; you breathe, smell and eat this stuff on a daily basis. But now I have to ask?
If you thought the approved $0.90/FEI or $1/FEI proposal might cause FEI to naturally re-achieve peg to $0.90/$1 because of the sudden demand BEFORE the approved contract swap begins, then would you please respond to the following?
Say that FEI doesn’t reach $0.90/$1:1FEI as you think it might; it’s now 1hr before the proposal contract becomes available to trade against → contract becomes available and ETH for FEI swap on Uniswap begins, driving a secondary FEI market arbitrage in rapid fire fashion. Will the contract check to see if the wallet holder just acquired the FEI and reject such a swap? That’s seems impractical since the contract would have to check the entire ledger for that wallet address since it may have acquired the FEI before the sale as well. Or did the FEI team load in the wallet addresses before the contract goes on sale in a cache to check FEI aging? If not, then the point above holds and the below remains a concern:
This can do two things:
- Quickly deplete the amount committed to ETH in this 1 time contract sale.
- Create more frustration for those who thought this might be a solution → driving more backlash → Cause the temporary FEI lift to peg to now sink again due to more sell pressure → TRIBE/FEI holders realize that potential relief didn’t materialize.
I’m pretty sure you thought about this. So why do you think this won’t happen?
BTW - I understand you’re likely to vote for for $1 proposal
1 Like
FEI will reach 0.90 or 1 before the proposal is executed.
$1 redeem would be a move of honesty and righteousness for Tribe holders. Only then, people can have faith in the stablization of Fei Protocol, and ensure long-term growth of the project
1 Like
I wish for the point #4…
Anything else should be a mistake
People did not read the doc and get burn.
I think the team need to fix the ‘bug’ in protocol but not the protocol itself that should work mid-long term.
1 Like
The protocol desperately needs to alleviate selling pressure. If we vote for a 0.9 redeem much of this pressure will be released. Not all, though… Some people will not be okay with a 10% loss on a stable coin. Of course they won’t be. It’s perfectly understandable, it should be a stable coin after all. So there still will be remaining selling pressure.
So why do we need this sell pressure? Do we really need so much capital in the pcv? Do we need this capital more than we don’t want the sell pressure? Or is it just because we hold a grudge against a narrative that describes an exploiter investor… Should we make decisions based on grudges?
I think, in terms of what is important for the project, keeping the peg is by far more important than the pcv or any emotionally based frictions between investor groups . The success of the protocol is independent of whether someone got away with some profit or not. Remember that it was initially envisioned that the max to be collected is 250 mil, let’s not be greedy. Let everyone that wants to leave leave and maybe, just maybe, the very optimistic game theoretical assumptions that the incentives rely on might finally hold. I don’t see any other way forward for this protocol unless we completely rework the stabilization algorithm on the fly, which will be a very expensive experiment…
2 Likes
Agree, this is not a space where you shouldnt double check your transactions. He/She also recent funded Boson if you look at their wallet, so clearly they are not fully funded in this project. Scammer looking to take advantage. We can revist returing in a couple months once this protocol is fixed, too soon for unvetted action on a potential scam.
1 Like
I agree, I think we should be focusing on moving forwards with the project.
1 Like
I agree 100% with this - this vote is premature and will achieve nothing other than burning PCV. This is the first sensible post I have read today. You have single-handedly restored my faith in the participants in this project. Thanks.
4 Likes
It Is going to be a good project
The arbitrage would likely occur in transition as the likelihood of the proposal passing increases or decreases in both the snapshot vote and the on-chain vote. If a proposal for $0.90 or $1 passes I think the arb will be close to completed by that time, and then after execution it would be executed against the contract.
The reasoning behind using a large percentage of PCV relative to outstanding FEI is to ensure that just about all sell pressure can exit at whatever level and there is low anxiety about rushing out.
2 Likes
The third option is extremely vague as we do not know what happens after that. It would for example be extremely useful if the team could clarify if the project direction has moved from “the PCV is used to maintain the peg” to “the PCV can be used to maintain the peg if tribe holders decide to.” If it is latter then probably that a rename from the fei protocol to something else (tribe asset management?) would be judicious
There is no evidence the protocol even works. Giving Fei @ $1 will further dilute the value of Tribe. If the protocol still cannot peg to $1, then the project is toast, a massive amount of PCV is gone, and Tribe holders are left with the bag. I’d like the team to run tests to see if this thing even works.
1 Like
Who exactly will be selling at let’s say $0.99 after the stabilisation procedure has ended? The whole point of this is to give people who want to sell at $1 a chance to sell at $1. Afterwards, only people who are planning to hold FEI will remain.
Nobody has ever wanted to hold a stable coin (long-term) simply for the sake of holding a stable coin. There must be some utility to generate demand for FEI. Personally, I do not feel that the FEI-TRIBE LP rewards will generate anywhere near sufficient FEI demand, on their own.
Again, this project only works once demand for FEI exists at an appropriate level. That should be the number one priority for the tribe. Joey and the team know much more than we do about planned and potential partnerships/integrations, etc. I’m sure that much of the nuanced detail of these conversations with integration partners cannot be shared publicly… but I will assume that the team will vote in the manner that they feel best moves this project in a direction to generate consistent demand for FEI. That is how this “algorithmic stable coin” becomes “stable”. Through demand and through nothing else. @joey can you share any details of partnerships/integrations that will spur demand + how a vote for any of Option A, B, C will affect these prospects?