FIP-50: Fei Interest Shift for Huge Yield
Summary Shift 100M USD of ETH from Compound and AAVE PCV Deposits to stETH, all TOKE + equivalent ETH to TOKE-ETH Uniswap Pool, all LUSD to the LUSD stability pool, all RAI + equivalent DAI to Uni v3 LP, and burn all FEI in Kashi. Motivation The Curve stETH-ETH pair has 5B worth of liquidity. stETH is a highly liquid asset, and appropriate to add to the treasury. Currently the entire recommended stETH allocation can be sold with <0.08% slippage. The TOKE-ETH pool on Uniswap is a better strategy decision than single-sided TOKE, as it forces pairing with ETH and has a far higher APY of 160%. Single-sided TOKE is actually at risk as in later Tokemak versions it will be used for TOKE-voted pairings, which are riskier than the TOKE-ETH pairing. We propose to shift our TOKE rewards as well as an equivalent amount of ETH to TOKE-ETH, and slowly phase out the single sided ETH pool. Moving 90M LUSD to the stability pool grants 13% APY. The stability pool is extremely safe, and grants a high level of yield to our LUSD funds. Moving 10M LUSD to Fuse Pool 7 allows us to start an LUSD lending market for Fuse, and this also synergizes well with the upcoming Stability Pool + Fuse Product. The RAI/DAI Uni v3 LP is incentivized by Reflexer Labs with 48% APY. Due to being a stablecoin pair, there is little to no risk of capital loss. The pool offers a far higher APY than Compound DAI deposits. (I’d appreciate if a dev weighed on on the automation of v3) Lending deployments on Sushiswap’s Kashi makes less than 1.5k per year currently, lower than the capital risk of deploying 8m on a third-party smart contract. Burning the FEI on Kashi eliminates this smart contract risk, with little profit lost. Specification
Shift 50M USD of ETH from Compound PCV Deposit to stETH Improvement from 0.10% to 4.92%~ APY Shift 50M USD of ETH from AAVE PCV Deposit to stETH Improvement from 0.30% (Including stkAAVE rewards) to 4.92%~ APY
Shift all TOKE Single-sided ETH rewards to TOKE-ETH, as well as an equivalent amount of ETH. Improvement from 4% to 160% APY.
Move 90M LUSD to the stability pool. Improvement from 0% to 13% APY.
Move 10M LUSD to Fuse pool 7.
Move all RAI as well as an equivalent amount of DAI to the Uniswap v3 pool. Improvement from 1.5% APY to 48% APY.
Burn all Kashi FEI
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0xd0ed...293DAE | 24.97M | 100M to stETH YES, TOKE-ETH YES, LUSD Stability YES, LUSD Fuse YES, RAI/DAI NO, Burn Kashi FEI YES |
 0xe0ac...BaCD52 | 10.093M | 100M to stETH YES, LUSD Stability YES, LUSD Fuse YES, RAI/DAI NO, Burn Kashi FEI YES |
 0x66b9...E40B11 | 5M | 100M to stETH YES |
 0x6ef7...5C6148 | 3M | 100M to stETH YES, TOKE-ETH YES, LUSD Stability YES, LUSD Fuse YES, RAI/DAI NO, Burn Kashi FEI YES |
 0x01dB...E561C7 | 1M | Burn Kashi FEI YES, 100M to stETH YES, LUSD Fuse YES, LUSD Stability YES |
VOTE POWER
Proposal Status
- Fri December 10 2021, 11:00 pmVoting Period Starts
- Sun December 12 2021, 11:00 pmEnd Voting Period
Current Results
1-100M to stETH YES
45.507M
2-LUSD Stability YES
40.497M
3-LUSD Fuse YES
40.497M