Published in

Fei Protocol

6 min readOct 5, 2021

by Fei Protocol on October 4, 2021

Receive these newsletters directly in your inbox by signing up here.

Welcome to the second issue of the Fei Newsletter, a community-sourced summary of the latest news in the Fei ecosystem. Here is what you can learn about in this issue:

Upcoming Fei v2 details and discussions
Successful TribalChief roll-out
Governance Enhancement with Optimistic Approval
Grants Program Updates
Protocol Parameter Optimization and Bonding Curve Updates
Recent integrations and partnerships
Fei Improvement Proposals (FIPs)
Community engagement

THIS MONTH’S TOP STORIES

Tribal Gathering

The anticipation for Fei v2 has been growing since the introduction and discussion of the general concepts at the last Tribal Gathering. Additional Fei v2 details are expected to be announced in the near term. Here is the summary of what was discussed:

Updated peg maintenance via 1:1 redeemability
Improved algorithmic PCV management for risk liquidity, and yield via Balancer v2 pools
Stronger alignment of incentives between TRIBE and FEI holders through TRIBE buybacks

We will be hosting a Tribal Gathering on Thursday, October 7th at 10am PT on Twitter Spaces to discuss all things Fei v2 with special guests from Balancer! You can add the Tribal Gathering to your calendar here.

TribalChief Rewards

FIP-18v2 TribalChief Rewards passed the on-chain vote and was successfully executed on September 5th, 2021. TribalChiel deployment provides TRIBE holders with more control over how staking rewards are distributed, including TRIBE emissions. Since deployment, TribalCheif has already incentivized more than $300M TVL! These emissions will provide growth and utility for the Fei ecosystem. Additional incentivized use cases are in development, and here you can find the current options available to earn TRIBE rewards and the associated APR rates.

TRIBE Rewards

Transitioning to the new TribalChief staking system brings many possibilities. One major annoyance is the gas fees required to transfer funds from the old staking system into the new one. With this in mind, the Tribe community voted to reimburse gas costs for eligible users in FIP-24: Gas Refund for TribalChief transition. Eligible users will receive 400 FEI deposited in their wallets over the next week.

Optimistic Approval

Optimistic Approval (OA) passed the DAO vote alongside TribalChief, thus the following community members will manage a 4 of 7 multisig wallet: @Bruno, @countvidal, @cozeno, @DioDionysos, @fei.saver, @Meertitan, @pavel

The motivations for OA were to further strengthen decentralization in the voting process. Currently, the Fei DAO FIPs go through Snapshot and on-chain votes, with Snapshot votes garnering higher participation. The reason is that Snapshot votes are free and include staked TRIBE. With this update, the OA can execute successful Snapshot votes.

It is important to reiterate that OA is NOT a conventional multisig. Its powers are narrowly defined, its mandate is merely to enact snapshot votes on-chain, and all its actions are gated by a timelock and can be vetoed by the DAO or Guardian before they take effect on-chain.

For transparency, this is the contract where all transactions can be retraced.

Tribe Community member Bruno Rodriguez wrote an excellent blog post on this governance improvement. Check it out!

Grants Program Updates

The Fei Grants Program has launched, and we are proud to announce that the first grants were already paid out!

The goal of the Fei Grants Program is to widen the base of contributors that make up our community and put more TRIBE in the hands of the people building Fei.

With around 200,000 TRIBE left for batch #1, apply for a grant today.

Protocol Parameter Optimization and Bonding Curve Updates

With the lead-up to v2 improvements, the Tribe has voted to update many Fei Protocol performance parameters. The key updates focused on raising the FEI redemption contract from $0.99 USD to $0.995 USD, as well as updates to the ETH bonding curve from $1.01 to $1.005. Additionally, already capped RAI, DAI, and DPI bonding curves have been re-opened, and have already brought in an additional $30M of assets to the PCV.

Integrations and Partnerships

We are happy to announce that FEI is now listed on Aave app.aave.com. Variable rate borrowing is incentivized through the TribalChief with 4M TRIBE at a constant rate over 6 months.

This is a significant step in the viability of FEI, with almost 22M FEI already borrowed.

FEI is now on Aave

Additionally, a portion of PCV which was allocated for the guaranteed redemption of FEI has been more productively deployed between Aave and Compound protocols to earn yield, while still being available for redemption purposes.

Fei Improvement Proposals

Passed FIPs:

FIP-18v2 TribalChief Rewards. For more info on this, see ‘Top Stories’.
FIP-20 Allocate Dripper ETH. 150k ETH was withdrawn from the EthPCVDripper to get allocated evenly to AAVE and Compound. Another 14,135 ETH was withdrawn to get allocated to stETH.
FIP-21 Optimistic Approval. For more info on this, see ‘Top Stories’.
FIP-22 Deploy FEI liquidity and TRIBE incentives to Aave.
FIP-23 Raising the ETH reserve stabilizer floor price to $0.99. Raising of the old $0.95 stabilizer floor to $0.99, as the old floor proved too low to be useful.
FIP-24 Gas Refund for TribalChief Transition. This proposal will provide gas refunds in the form of FEI to eligible addresses and fund the OA multisig with ETH to carry out the token multisend transactions.
FIP-25 Add G-Uni to TribalChief. With this proposal, 100 AP were allocated to the G-Uni FEI-DAI pool, and the pool currently has more than 12M TVL
FIP-26 + 27 Bonding Curve Cap and Spread Updates. These proposals increased the bonding curve capacity and tightened the FEI redemption spread to 0.5%
FIP-28–29 FeiRari TRIBE and Optimistic Approval.
FIP-30 Upgrade to OZ Governor. This proposal upgrades the Fei DAO code to the new OZ Governor and removes the voting delay while extending the voting period

Community Events:

During the last few weeks, the core team hosted and participated in multiple community calls and events. You can find the links here:

The first Tribal Gathering community call took place on Discord on Thursday, August 31st! You can find the notes of the event on our Discourse.
Brianna spoke at Mainnet 2021 in New York City September 19–21, 2021.

Crypto Social Media:

FEI topped the “Other Stablecoin Platforms” category over on the Serenity Fund weekly analysis:
https://tinyurl.com/25zb26rz

Check out this Tweet by @anjan_vinod about the partnership with AAVE:
https://twitter.com/anjan_vinod/status/1438945946734252032