PDP 34: Add mUSD/FEI Feeder Pool

Posted on behalf of the mStable ProtocolDAO

Simple Summary

It is proposed to add an mUSD/FEI Feeder Pool as specified in MIP 9 on Ethereum mainnet. FEI is an algorithmic stablecoin that is collateralized by PCV (Protocol Controlled Value) and is fully decentralised.

Abstract

FEI is an algorithmic stablecoin that is collateralized by PCV (Protocol Controlled Value) and is fully decentralised. The Fei Protocol primarily funds PCV via bonding curve FEI issuance. The bonding curve mints FEI in exchange for PCV at an oracle determined ETH exchange rate.

The addition of an mUSD/FEI Feeder Pool would allow users holding FEI to participate in the mStable’s ecosystem and benefit from seamless deposits directly into Save and withdrawals back into FEI. FEI has also a lending market on Aave V2 that could enhance the yield in the Feeder Pool.

Motivation

mStable’s ethos of decentralization should be reflected by the assets it includes in the protocol. The addition of the FEI Feeder Pool is a further step into stable assets that are fully decentralized and therefore offers a lower risk of Nationstate’s interference. Additionally, there is a strong signal from the FEI Tribe to support this pool.

Specification

A new instance of the FeederPool contract will be deployed with the following parameters:

  • Name: mUSD/FEI Feeder Pool
  • Symbol: fPmUSD/FEI
  • Amplitude coefficient (A): 100
  • Swap fee: 0.04% (4 basis points)
  • Redemption fee: 0.04% (4 basis points)
  • Governance fee: 10% of fees charged
  • Min bAsset weight limit: 3%
  • Max bAsset weight limit: 97%
  • FEI integration: FEI has a market on AaveV2, the contract AaveV2Integration.sol will be used allowing to earn native lending yield.
  • mUSD integration: none initially, integration can be added later.

The mUSD smart contract address is 0xe2f2a5c287993345a840db3b0845fbc70f5935a5

The FEI smart contract address is 0x956F47F50A910163D8BF957Cf5846D573E7f87CA

A new instance of the contract BoostedDualVault for the vault for the mUSD/FEI Feeder Pool will be deployed to accommodate dual rewards with the following parameters:

  • Name: v-mUSD/FEI fPool Vault
  • Symbol: v-fPmUSD/FEI

Permissions

This MIP grants the ProtocolDAO permission to adjust the Amplitude coefficient (A) when deemed necessary.

Additionally, an Iron Bank integration (or any other Integration that was approved by a previous proposal) can be added later, when deemed beneficial.

Next Steps

Pending no significant changes to its content, this proposal will be taken to snapshot vote on Monday, 25h October 2021. Voting will be open for a 5 days window to give adequate time for a concurrent discussion. Governors can change their vote at any time should the discussion sway their decision. We look forward to hearing what MTA token holders have to say and seeing how they cast their votes.

Think this would be a good addtion to pool

2 Likes

Love that the original FEI is possible for the feeder pool, as this allows FEI to be utilized in Aave and give a nice solid boost that would otherwise not be possible.

Overall, I’m quite impressed by how quickly Fei Protocol was able to find a place for itself in so many different and diversified protocols, and will be happy to deposit some into these pools once they’re live! :sunglasses:

1 Like

Vote is live: Snapshot

1 Like