FIP-39: Expand Fuse Charter

Forum discussion

https://tribe.fei.money/t/fip-39-expanding-fuse-charter/3591

Summary

Expand Optimistic Approval Charter for Fuse to add frameworks for:

• Adding FEI derivatives ($5m initial supply cap)
• Seeding up to 1m FEI in verified Fuse pools but NOT unverified
• Adding FEI for whitelisted and highly utilized pools
• Removing FEI from unutilized pools

Motivation

In FIP-13, Tribe holders authorized Optimistic Approval to deploy newly minted FEI to lending markets following a framework. This only included the minting of FEI, without any provisions for removing, or more granular instructions for which pools can be supported. With the recent launch of permissionless pools, many include FEI and this introduces some arbitrariness into which pools get seeded.

Rari Capital DAO holds snapshot votes to determine which DAOs and users get the whitelisted ability to create verified pools. This adds a layer of protection around fraudulent or immature pools for prospective users.

FIP-29 granted Optimistic Approval power over the FeiRari pool, including the ability to add new assets and change parameters.

Proposal

Expand FIP-13/29 charter to authorize OA to do the following:

• Add any new FEI derivative to the FeiRari Fuse pool subject to:
  • 5m Supply cap
  • Sufficient on-chain liquidity at least 1x amount in Fuse
  • A manipulation resistant oracle (e.g. Chainlink or Uniswap TWAPs)
  • Verifiably cannot be minted arbitrarily
  • No recursive fuse derivatives
• Add FEI up to $2.5m FEI in any verified Fuse pool but NOT unverified pools without a snapshot vote (DAOs behind unverified pools can petition on forum)
• Increase FEI in a pool by enough to move below target utilization if:
  • above target (the “kink” in the interest rate model, usually 80%) for more than 90% of 1 rolling week
  • whitelisted by DAO for increases (only FeiRari to start)
• Decrease FEI in a pool to up to 50% of the current liquidity if:
  • below 20% utilization for more than 90% of 1 rolling week

The points regarding Increasing/Decreasing FEI in pools also relate to non Fuse markets such as Aave, CREAM, Kashi.

Voting Rules

This is a binding vote which authorized OA to act according to the above charter. OA actions are still subject to timelock and veto. Quorum is 10m TRIBE. The vote follows single-choice style with the following options:

• Yes, expand OA Fuse charter
• No, do nothing

If Yes wins, OA will be able to begin enacting the policies listed following the Summary and Proposal sections.