FIP-19: Subsidized RAI Bonding curve

Forum thread: https://tribe.fei.money/t/fip-19-subsidized-rai-bonding-curve/3442

Summary

Open a RAI bonding curve with 6 million FEI subsidized. This would mean the PCV acquiring about 2 million RAI (0.8% of the PCV). The RAI would be allocated to the Rari Capital Fuse pool 9 and/or Aave.

Background on RAI

RAI is a decentralized and governance minimized stablecoin. It launched in February 2021, the current market cap is $50m and the TVL is $160m. RAI has managed to stabilize using its on-chain PID controller and is now undergoing a governance minimization process with the intention to harden the protocol. RAI follows the same overcollateralization model of MakerDAO’s DAI but is exclusively backed by Ether. While not being strictly pegged to 1 dollar, RAI is stable showing a daily volatility well under 1% on most days.

Specification

Bonding curve

Use the ERC20 bonding curve with 6m FEI scale, 10m FEI mint cap, a pre-scale discount of 0.3% and premium post-scale of 2%.

Allocation

For the allocation there are 3 possibilities:

• 50% Aave + 50% Fuse
• 75% Aave + 25% Fuse
• 100% Aave

Voting rules

This is an approval style vote, meaning multiple options can be selected. Whichever option of the group receives highest approval will be submitted to the DAO, this is a non-binding signal vote.