FIP: 85-FEI-Deployment-Strategy

Summary: Forum post: https://tribe.fei.money/t/fei-deployment-strategy/3993 This proposal describes a more structured approach to PCV exposure to minting and deployment of FEI for various applications, such as Laa$, Turbo and yield-generating use cases. It also ends the FEI contractionary monetary policy and proposes an initial deployment strategy.

The Fei Labs team performed a baseline PCV Stress Analysis (https://docs.google.com/document/d/1RCsRrImGoMvrJrgonYjx4PjqRTGvoLIRFq6szrnA7tY/edit?usp=sharing). The analysis examined various market scenarios and characterized FEI’s on-chain liquidity depth. This analysis suggests that up to 104M FEI can be deployed across Turbo, Fuse Convex Farming, Arbitrum, Compound, Balancer Fuse Pool and Volt without significant risk to FEI’s peg or collateralization. Currently, there are 64M FEI in OA Timelock, as well as an additional 30M FEI from 50M FEI Laa$ allocation, and 10M FEI in Angle protocol that will be recovered, which could be utilized for a guarded reentry into expansionary PCV management mode.

This represents a fairly conservative position, which allows the Tribe DAO to effectively launch Turbo, add FEI liquidity to Arbitrum, provide additional borrowable funds on Compound, while continuing with Laa$ and further supporting Fuse pools. These actions will allocate Tribe DAO up to 104M FEI to deploy across broadly supported initiatives, while adhering to the FEI minting policy recommendations.

Proposed deployment strategies: Turbo: 40M FEI (estimated 5% APR): the initial deployment for 40M FEI, but with the planned expansion of Turbo to Aribtrum, Tribe DAO should pre-approve additional 10M FEI to be minted as needed Double collateralized

• Strengthen DAO-2-DAO partnerships
• Increases Fuse TVL and FEI utility
• Technical requirements: Nothing new to develop (just whitelisting collaterals & setting their caps)

Compound: 5M FEI

• Blue chip lending platform
• Visibility and utility for FEI
• Technical requirements: Nothing new to develop

Arbitrum: 10M FEI

• Layer 2 presence and adoption
• Technical requirements: Need new contracts to interact with the Arbitrum L1ERC20Gateway (L1->L2) Need new contracts to interact with the Arbitrum GatewayRouter 1 (L2->L1) Need new contracts to propagate L1 PCV_CONTROLLER role to interact with contracts on L2 and handle PCV securely

Minting FEI to Convex Fuse Pool: 10M FEI

• Increases Fuse TVL
• Increased FEI utility with long tail assets
• Technical requirements: Nothing new to develop

Laa$ (20M FEI)

Expected deployments:

• SYN (estimated 9M)
• NEAR (estimated 3M)
• FOX (estimated 3M)
• POOL (estimated 1M)
• UMA (estimated 4M)

Volt (12.4M FEI) Tribe DAO incubated product

• 10M FEI PSM backstop
• 2.4M FEI for Volt LBP seed their initial liquidity

Balancer Fuse Pool (5M FEI)

• Strategic partnership with the Balancer DAO

Voting Rules

This is a binding vote. Once approved, the OA can deploy up to 104M FEI in specified markets.