TribalChief Staking Rewards Upgrade

Proposals
16
How about moving 500 AP from Uniswap to FeiRari?
  • 500 AP Uniswap FEI-TRIBE LP
  • 1500 AP FeiRari TRIBE
  • 750 AP Aave
  • 750 AP Curve

I think all parties would prefer this. Many retail TRIBE holders voted for both Uniswap and FeiRari because those were the two options that had TRIBE in them. But between those two, I think they would favor FeiRari since it’s 100% TRIBE. At the same time, we all seem to agree that rewards on Uniswap isn’t very useful for the protocol, especially with the IDO already there.

So FeiRari seems better than Uniswap on both accounts. I would also support getting rid of Uniswap rewards all together, but that seems to deviate too much from the snapshot, so perhaps something to consider later.

Edit: The snapshot significantly favored Uniswap over FeiRari, so it seems unwise to move AP to favor FeiRari.

However, I still advocate for treating the current amount of rewards going to TRIBE holders as a hard restriction that we must honor.

In addition, I think the reward going to Uniswap should count as close to 100% towards TRIBE. That is because FEI must be paired with TRIBE in order to earn the reward, and TRIBE is the scarce asset while FEI does not appreciate above 1. Intuitively, suppose the government started giving a fixed amount of rewards pro rata to gold bars deposited at a government owned vault, with the provision that each gold bar must be paired with $1. This policy is going to increase the market price of gold bars, but not the price of a dollar because everyone can get a dollar at, well, $1. Now, suppose the government halves the reward, removes the restriction that gold bars must be paired with $1, and gives the remaining half of the reward to people who deposit one dollar bills. This has a negative impact on gold bar holders because they will not get the other half of the rewards by moving their $1 to the new staking program. The APY on the dollar will be extremely low, as many other people will use their dollars to stake as well. Moreover, the gold bar holders do not benefit from this increased demand for dollars, since the dollar does not appreciate. (TRIBE holders do benefit when there is increased demand for FEI, but that is distributed among all TRIBE holders, whereas only the stakers bear the cost of reducing staking reward).

As a result, I think we should keep the current rewards reserved for single-sided TRIBE staking (including Uniswap), and use Treasury for additional rewards that bootstrap FEI usage.

1 Like