FIP-59: TribalChief Allocation Adjustments

Summary:

Adjust TribalChief rewards away from FEI-TRIBE liquidity and FEI-3Crv towards Uniswap USDC-FEI 1bps tier and d3 pool.

Motivation/Background

FEI/TRIBE LP tokens

25% of FEI/TRIBE liquidity (amounting to ~$87MM) is currently staked in the TribalChief contract earning 47% APR. The remaining 75% (amounting to ~$271MM) is owned by Fei Labs core team and investors, subject to a 1 year cliff and 3 year linear vesting, and custodied by the IDO contract.

$1.32 | Uniswap FEI/TRIBE LP (UNI-V2) Token Tracker | Etherscan 2 The trading volume on the Uniswap v2 FEI/TRIBE pool is de minimis. At current TRIBE prices, TRIBE holders are paying $112,000 per day to increase the size of the Uniswap pool from $271MM to $358MM, which results in marginally lower price impact.

https://v2.info.uniswap.org/pair/0x9928e4046d7c6513326ccea028cd3e7a91c7590a 1 This proposal removes TribalChief incentives for this pool, which will increase the value of our other incentive programs proportionally.

Fei / Stablecoin Liquidity

This Curve metapool is doing very little volume in part because it is not being seen by aggregators like 1inch and Paraswap, and because of the existence of concentrated Uniswap liquidity: -incentivized Fei/Dai .05% Gelato LP with $18MM TVL, and -unincentivized FEI/USDC Uniswap liquidity with $33.75MM TVL

These two pools combined are averaging ~$70MM daily volume recently with a combined 100 AP, whereas the Curve pool is doing far less volume with 1000 AP.

Voting Rules

This is a binding vote, with the result to be enacted by Optimistic Approval. The options are "approval style" with the most approved option in each category being the winner:

Remove FEI/TRIBE Uniswap LP incentives (1000 → 0 AP) a. Gradually over 2 weeks b. All at once c. Do not remove

Incentivize FEI/USDC Uniswap v3 LP 1bps a. 250 AP b. 500 AP c. Do not incentivize

Reduce 3CRV/FEI incentives a. 250 AP b. 500 AP b. Do not reduce

Incentivize Curve d3 pool a. 100 AP b. 250 AP c. Do not incentivize