DeFi is advancing at a high speed. In order for Fei to innovate and be competitive in this environment, we need decentralized structures working for the benefit of the community. Squads with autonomy and agility to go deep in some subjects, analyze alternatives and bring proposals to community decision.
What are you proposing?
We are proposing the creation of a PCV Diversification Working Group for 3 months ending on 08/05/2021.
What is the core problem(s) you want to solve?
- PCV concentration in ETH brings uncertainty about Fei Protocol ability to sustain the peg
- Capital inefficiency of holding assets that are not helping on providing liquidity, generating yield or contributing to minimizing the risk
What impact will this project have?
- Improve Fei Protocol’s ability to sustain the peg throughout the market cycle (ie: independent of price volatility). This will be important to encourage Fei usage and integrations with other DeFi projects.
- Growth in PCV value over time leads to more collateralization of Fei, creates the opportunity to enhance TRIBE tokenomics in the longer term and enables the creation of new bonding curves.
What does this group aim to accomplish (objectives and key results)?
- Develop an investment policy and a risk management strategy for PCV (some initial discussions here)
Key result: a document with an investment policy and risk management strategy shared with the community
- Evaluate the alternatives and propose the mechanism and process to manage PCV (some initial discussions here and here)
Key result: a document describing the mechanism and the process and sharing the code to execute it
- Evaluate alternatives and propose the initial allocations to diversify PCV (eg.: the creation of a stable pool in Curve and Balancer, some initial discussions here)
Key result: document with the details of potential initial allocations and if necessary the code to implement them
The outputs from this tribe working group do not lead to a direct modification/upgrade of the Fei protocol. The outputs will go first to review from the community and then to community decision through voting.
How will this task be accomplished (methodology)?
Objective 1 - Investment policy and risk management strategy: Benchmarking investment policies and risk management strategies of institutional investors and DeFi; draft a proposal; discussion with community members; posting in the forum for review. Once completed and approved, this policy could be periodically reviewed and updated by the community.
Objective 2 - Mechanism and process to manage PCV: Benchmarking mechanism and process to manage treasuries on DeFi and funds from institutional investors; draft a proposal; discussion with community members; write the code, post in the forum for community review.
Objective 3 - Initial Allocations to Diversify PCV: Analyze the pros and cons of each option; contact teams from other projects, draft a proposal; discussion with community members; write the code (if necessary), post in the forum for community review.
We will start with objectives 1 and 2 in parallel. After completing them, we will go for objective 3.
What is needed to accomplish this task/project (proposed budget and use of funds)?
The team combined experience includes working as institutional investors, limited partners in venture capital funds, private equity management, crypto treasury management and solidity coding. And more important than outside credentials, the team has already proven engagement in the community.
After talking with some community members, we decide to follow the model: work first and reward later without any defined budget. After seeing the concrete result produced by this tribe, the community can vote to reward contributors (eg.: paying with vested TRIBE tokens). We are interested in the long-term success of the Fei Protocol.
During this project, we are open to contributions outside this tribe. This group is just a way to better coordinate our efforts but needs to be deeply integrated with the community and other tribes (including other tribes building ideas related to PCV Diversification). If we receive valuable contributions that improve the products we are building here, we will propose that part of the reward should go beyond this group.
Working Group Leader(s)
How will you report your progress to the community?
- Biweekly forum post outlining the advances of the week
- More frequent interactions and updates on the PCV Diversification channel in Discord
- Present progress during monthly community call
Request for Feedback
Please leave comments with any feedback about these ideas.
Let’s build the future, together!
- Yes, with modifications