Sushiswap Integration

FIP-XX - Sushiswap Integration
Status: Draft
Author: @arcology

This proposal will:

  • Seed 10M to form a FEI-USDC pool on Sushiswap with 100AP weighting of TribalChief TRIBE rewards;
  • Seed 10M to form a FEI-DAI pool on Sushiswap with 100AP weighting of TribalChief TRIBE rewards;
  • Seek SUSHI rewards to create a 2x rewards pool.

FEI has an established presence on Uniswap, Rari, and lending markets Aave amongst others.
With the effort to grow the Fei Protocol ecosystem and further the stablecoin of DeFi narrative, this proposal will attract further liquidity to the ecosystem while pursuing an integration with Sushiswap, one of the last large DEXes that we have not partnered with thus far, as well as further hedging idiosyncratic risk from other protocols.
TribalChief has served Fei well with the rapid deployment of rewards to incentivize multiple avenues of liquidity. This proposal will continue to rely on its deployment to the proposed new pools. The integration will also further initiatives with the Sushi ecosystem (hopefully more trading pairs - note that DPI-FEI is currently incentivized by Sushi) in addition to FEI being seeded to the Kashi lending system. Fei Protocol should also be able to earn Sushi LP fees with the seeded liquidity, as well as any users who choose to join the proposed SLP pools.

The proposal will seed 10M each to establish a FEI-USDC and a FEI-DAI pool with 100AP weighting of the TribalChief rewards stream, which will slightly divert existing rewards to all existing pools. However, we will also seek a SUSHI rewards stream together to hopefully attract more users due to the low weighting, which will keep rewards more or less unchanged in other pools. The seeded amount is in accordance with FIP-13.

Would you support this Integration?
  • Yes - as proposed
  • Yes - but with more incentives
  • Yes - but with less/no incentives
  • No - more discussions required

0 voters

I am in favor of this proposal. Sushi has been receptive to FEI so far and a closer integration would benefit both platforms.

If we incentivize Sushi stable pools, I think the AP should come from the Curve FEI-3CRV pool. This is because we should reduce the incentives going to the Curve pool at least for the time being, and also because we should not further reduce the stream of TRIBE being distributed to retail TRIBE holders.

On a different note, how much Sushi rewards are required to make the Sushi pool as efficient as Uniswap V3? Without sufficient Sushi rewards, it may be better to increase AP on G-UNI.

Relatedly, does anyone know how Sushi rewards are allocated? I noticed that they change pretty often (several times a day) but couldn’t figure out how exactly MasterChef APs are determined.

I agree with this. My original proposal was actually to entirely stop the Curve rewards but there was no further discussion. We can suggest to modify the Curve pool to 500AP and split 250AP evenly between the proposed Sushi pools.

I’ve posted on their application form to get an official integration with SUSHI rewards started but haven’t heard back from them. Perhaps I’ll also need to go to their forums and start a proposal.

1 Like

Trident is set to launch in a few weeks. Do we want to wait for that and use either the hybrid pool (similar to Curve AMM) or the concentrated liquidity pool (similar to Uniswap v3)?

I’ve contemplated that actually. But Trident is really new so I’d want to play it safe and either wait an even longer while (say end of year) before we decide on how we want to do this. The current Sushiswap pools are tried-and-tested and the 2x rewards pools are also quite popular so I would aim for that (as well as diverting Curve rewards to these pools). But unfortunately I have not heard back from Sushi.

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A fair point.

I also think we can also divert the other 500 AP going to Curve to somewhere else, like the G-UNI pool.