Fei Money

Basic Summary The following is a proposal to open a bonding curve for DAI, with a target scale and cap of 50M FEI, at a discount of 0.3%.

This would add ~49.85M DAI to the PCV, and release up to 50M FEI into circulation.

Motivation This proposal fits in a larger plan to interface with the Curve protocol, and improve the liquidity of FEI against other stablecoins.

Possible intended future deployment (pending current & future code development and a vote) for this DAI are :

• Providing liquidity in the Curve FEI metapool
• Providing liquidity on Uniswap v3 against DAI
• Deploying DAI to Aave, the FeiRari, or leaving it in Compound

These deployments will have to be approved in a separate proposal, once we have acquired DAI in the PCV. This proposal is a prerequisite to any PCV action involving DAI.

Waiting for the next vote(s), the DAI acquired will be temporarily deposited on Compound, yielding around ~3k DAI per day, plus ~1.5k$ of COMP per day at current rates.

Specification A DAI bonding curve will be created with a 50M FEI fundraising target. DAI holders are able to deposit DAI tokens into a contract and receive a 0.3% discount to the Chainlink oracle feed paid in FEI. All the transaction costs are borne by DAI depositors. Depositors are expected to arbitrage the bonding curve discount to get more FEI than DAI deposited. The DAO proposals steps will be : Grant Minter role to the new DAI bonding curve

Voting Rules Voting will last 2 days. This is a non-binding signal vote. Please keep in mind that snapshot votes can be changed but not withdrawn until the end of the voting period. The two options to vote on are:

• Open DAI bonding curve as proposed
• More discussions needed

This is a binary vote. If option 1 wins, a DAO vote will be submitted next week.