FIP-56: Fei v2 Backstop + DAI Redeemability
Forum discussion
https://tribe.fei.money/t/fip-56-fei-v2-deployment-proposal/3768
Summary
On December 15, pending governance approval, the following features will go live for DAO vote:
- TribeMinter with rate limit
- TRIBE Backstop
- DAI redeemability contract
TribeMinter
Enhances access control around TRIBE minting and rate limits supply expansion to 100% inflation per year at the extreme. The true inflation will likely be far below this and could be negative if buybacks exceed backstop + minting.
TRIBE Backstop
The Tribe backstop is a contract that allows holders to exchange FEI for newly minted TRIBE when the collateralization ratio is under the threshold. The exchange rate will be 1:1 at the oracle reported price for TRIBE in USD. The initial collateralization ratio threshold will be 100%. This can be raised or lowered by governance in the future.
The backstop includes an “Oracle Security Module” similar to MakerDAO where the collateralization ratio needs to be continuously below the threshold for a certain period before the backstop is open for usage. The proposed window is 24 hours. This is in place to further minimize backstop usage in the event of near threshold collateralization and sharp market volatility.
DAI Redeemability
The first redeemability contract proposed is DAI. This will allow users or arbitrage bots to swap FEI for DAI at $1 according to the oracle price with a small fee.
The DAI redeemability contract will have a “Price Bound” mechanism which automatically shuts down redeemability if DAI trades outside a supported range. This saves the PCV in the event of DAI completely losing its peg. The proposed initial bounds are $.95 and $1.05.
Redeemability contracts refill their own reserves by pulling from other PCV contracts periodically. The DAI redeemability will have a dripper attached to the Compound DAI PCV Deposit with a frequency of 30 minutes and a size of 5m.
Additional parameter changes
Increase ETH reserve stabilizer and bonding curve spread to 75bps
DAI spread at 50bps to be lowered when we lowered within 2 weeks to 25 bps
DAI buffer starts at 20m and lowers to 10m within 2 weeks.
Add DAI redeemability as a “Safe” address for the PCV Guardian to send funds to.
Voting Rules
This is a non-binding single-choice vote. Quorum is 10M TRIBE. There are 3 options:
- Yes, implement v2 as proposed
- No, do not implement v2
- More discussions
If Yes passes, the proposed implementation will be submitted to the DAO on Dec 15 around 12pm PT.
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0xd0ed...293DAE | 25.051M | More discussions |
 0x22fa...91Cb32 | 15.578M | More discussions |
 0xcfc5...8Ba0C5 | 12.235M | More discussions |
 0xe0ac...BaCD52 | 10.044M | Yes, implement v2 as proposed |
 0x107D...435A43 | 10.002M | Yes, implement v2 as proposed |
VOTE POWER
Proposal Status
- Mon December 13 2021, 06:00 pmVoting Period Starts
- Wed December 15 2021, 08:00 pmEnd Voting Period
Current Results
1-More discussions
62.045M
2-Yes, implement v2 as proposed
51.76M
3-No, do not implement v2
82,724.215