What's the deal with the TRIBE pool 2?

I’m failing to see how the incentivized FEI/TRIBE pool adds value or supports the underlying mechanics of the Fei Protocol. The extra incentives for this pool proposed in FIP-2 make me question whether the team understands the benefits (and downsides) either.

As a TRIBE holder, participating in this pool 2 means that:

  1. I need to take on risk by purchasing FEI in order to LP with my TRIBE.
  2. When the price of TRIBE goes down, I take on extra risk by purchasing more TRIBE.
  3. When the price of TRIBE goes up, I lock in losses by selling TRIBE at a depressed price.

If I choose to opt out of these risks, my TRIBE holdings get diluted and probably sold on the market at double the rate. FIP-2 is objectively bad for TRIBE holders, which is contrary to how it is being positioned by the team. So I have to ask, what are we trying to accomplish by incentivizing more liquidity in this pool? If the primary goal is FEI stability, we’d be much better off incentivizing a FEI/stablecoin pool. If the goal is to increase demand and utility for TRIBE, there are a number of alternatives that would accomplish this while mitigating all or some of these risks. Some options:

  1. Incentivize single sided liquidity pools for TRIBE using DEXs such as Bancor or DODO.
  2. Incentivize lending TRIBE and using it as a collateral asset on protocols such as CREAM or Rari.
  3. If we must incentivize a double sided pool 2, it should be TRIBE/ETH or TRIBE/DAI (rather than FEI). This creates better separation of concerns and reduces risk for TRIBE holders with a similar outcome. This can be potentially done in conjunction with an incentivized FEI/stablecoin pool.

Have any of these avenues been considered? I’d also love to hear any arguments in favor of the current approach.


One of the main points of this protocol is so that the team can get things moving again, and focus on working towards integrations, like you suggest.

I think moving forward, a Tribe/Eth pool would be great, it would give 100% pre swappers something to do outside of governance. I will forward these thoughts to the team :slight_smile:


I like this idea. Incentivizing a FEI/stablecoin pool will help the peg. It could also be explored the creation of a pool like that using the PCV.

We are increasing the buying pressure for both TRIBE and FEI, incentivizing a more aligned community with less rivalry between FEIs and TRIBErs, rewarding the ones believing in the long term of the project and that are providing a service (liquidity) to the protocol. Liquidity andthe peg are key to FEI success.

I think the goal is to increase the demand and utility for FEI. The consequence of that is a more valuable TRIBE because the PCV will be greater.