Summary

Let the community decide on a native risk-free interest rate.

Update April 26th, 2022: Moving to a FIP process after a first poll. The majority vote was 3% FSR.

Motivation

In the road to 1B FEI 3, one main idea was to provide a native risk-free interest rate. This would be a simple stacking contract where Tribe governance decide the rate. A wrapper, ibFEI (or any other name), on top of it could provide a ERC20 compliant token (and most likely ERC-4626 compliant).

Such a decision will have many implications:

• Fei will enjoy better supply rates at lending protocol supporting the risk free rate. Currently non-lent FEI sit idle. With a 67% utilization rate and a 3% borrow rate, this lead to a 2% supply rate. If we provide a 2% risk free rate, it would keep the 3% borrow rate but give a 2.67% supply rate narrowing the supply/borrow spread.
• Fei could become a key stablecoin for Dex pairs. Dex could integrate the risk-free rate internally or use ibFEI as the stablecoin and have a front-end making the wrap/unwrap. 1inch for instance already does that for DAI/CHAI (but with 1bps rate, no one cares).
• This could be integrated by exchanges, making a use case for listing FEI.

Specification

Create a FEI stacking contract with the following parameters:

• FEI are minted and added to the stacking contract according to a rate.
• The FEI Saving Rate can be updated.
• An initial cap of 100M is used and can be updated later.