Balancer

This proposal also appears on Balancer’s forum.

Hi - Brianna here, core contributor at Fei Protocol. Fei has created a stablecoin that stabilizes itself through transparent on-chain reserves.

We recently announced Fei v2, introducing a way to algorithmically manage volatility risk through a custom Investment Pool using Balancer v2 platform. This has the potential to add Fei’s current PCV (currently $913M +) to the Balancer platform. Tribe Community is excited to team up with Balancer!

As Fei v2 implementation anticipates bringing significant TVL to Balancer, it would be beneficial for our communities to further our alignment through a Treasury swap.

Inspiration for this proposal came from our mutual friends at Index Coop.

Benefits include:

-Treasury diversification into two assets (FEI, a stable asset, and TRIBE, with governance rights and Protocol Controlled Value performance upside) -Balancer DAO is eligible to earn additional TRIBE by participating in Fei’s incentivized staking programs (Uni v2, Rari, Curve, etc.) -FEI would give Balancer stable assets in its Treasury -Distributes tokens into the hands of a long-term ecosystem partner -Governance power for DAO proposals

Specification

200,000 BAL from the Ecosystem Fund would be exchanged for the equivalent USD value of TRIBE and FEI in equal proportions from Fei DAO Treasury, using the 20 day smooth moving average price at the time that voting ends. Currently 1 BAL = 22.49 FEI = 34.33 TRIBE. Price feed will be BAL/USDT (Binance) and TRIBE/FEI (Uni-V2) FEI/ETH (Uni-V2)

Fei DAO will deposit BAL into BAL/WETH 80/20 paired with ETH from the PCV and commits to holding for the long run. The Fei DAO will also be eligible to earn BAL rewards, which will be further held by Fei and possibly reinvested in the 80/20 BAL/WETH pool.

Balancer commits to holding TRIBE for the long run and using FEI for operations.