FIP-38: Tokemak Reactor and Swap

Summary

Commit to seeding 6M TRIBE for TOKE if a Tokemak reactor is spun up. Also, deposit 10k ETH in single sided LP.

Forum Discussion: https://tribe.fei.money/t/fip-38-tokemak-tribe-reactor-treasury-swap/3580

Proposal

A TRIBE reactor on Tokemak will improve liquidity for TRIBE trading pairs across trading venues and open up additional opportunities to leverage Tokemak with the aim of including FEI as a base asset when the Toke Community diversifies from centralized stablecoin base assets.

To initialize a TRIBE reactor, Tokemak requires an operational reserve of TRIBE to efficiently deploy TRIBE liquidity to trading venues (Uniswap, SushiSwap, 0x, Balancer) and make TRIBE LPs on Tokemak benefit from IL mitigation. This can be structured as follows:

The Fei DAO to make 6M TRIBE available to the Tokemak reactor reserve by proceeding with a DAO-to-DAO trade for equivalent value in TOKE.

After receiving TOKE, this will be staked single-sided to earn additional TOKE.

This part of the proposal can be completed by Optimistic Approval through the timelock.

In the meantime, 10k ETH will also be staked single-sided to earn additional TOKE, this ETH will come from Aave and Compound.

A future proposal can determine whether to LP with the TOKE for a higher APR, and whether to supply additional TRIBE for liquidity.

Voting Rules

This is a non-binding, single-choice signaling vote. Quorum is 10M TRIBE.

The options are:

• Yes, seed TRIBE and ETH
• No, do nothing

If yes wins, the ETH segment of proposal will be submitted on-chain with a provision to send OA Timelock 6M TRIBE to complete the swap.