Proposal Type:

A vote to select which collateral assets should be added to the new FPO liquidity pool.

Governance Rule Version:

Interim governance rules.

Proposer:

FinNexus Team.

Proposal:

About Algorithmic Stablecoins

An algorithmic stablecoin is a token that adjusts its supply deterministically (i.e. using an algorithm) in order to control its price. At the most basic level, an algorithmic stablecoin expands its supply when it is above the price target and contracts when it is below.

Algorithmic stablecoins play an increasingly important role in DeFi. A number of platforms have launched elastic stablecoin models, capturing great total value locked (TVL).

Algorithmic stablecoins are still at an early stage of development and in most cases, their value is quite volatile. To become reliably useful - like USDT or DAI - they must first be accepted as currency in the DeFi space and by other applications on the Ethereum protocol.

As long as volatility remains high, the token's utility may be limited. However, as protocols mature and volatility plummets, they will likely become more useful.

You can find more information on algorithmic stablecoins here.

Why it is beneficial to experiment with algorithmic stablecoins in an FPO liquidity pool

1. The competition for mainstream stablecoin token holders such as DAI, USDC, and USDT is fierce. DAI token holders for example can earn by locking their coins in Compound, Aave, or dozens of other platforms. Unlike mainstream stablecoins, algorithmic stablecoin holders have very limited options for earning returns on their coins. We can help meet the needs of this untapped market by offering them an easy way to earn an attractive return on their stable coins.
2. Algorithmic stablecoins are attracting large liquidity and have the potential to become a very important type of DeFi benchmark money. As they are still young, this is a good moment to experiment with them on our FPO model.
3. The FPO model is based on liquidity pools using the MASP mechanisms. Since values for powering, trading and settling options are measured in USD, the initial possible volatility associated with algorithmic stablecoins should not be an obstacle.
4. The introduction of algorithmic stablecoins is likely to increase TVL.
5. FinNexus is going to launch a mining program for the new pool, with a similar mechanism as the one proposed in [FIP #03]. The daily basic mining amount will be 4,000 cFNX/day. For more information about cFNX, please refer to [FIP #03].

Possible Risks

1. The value of algorithmic stablecoins may change, with volatility having an unfavorable impact on the trading and settlement of options. We need to set a high collateral rate requirement for backing options.
2. A trustworthy price feed source for collateral assets is needed.
3. There is a risk that some algorithmic stablecoins may lose their liquidity if the mechanism fails to work or the price falls into an irreparable descending spiral. For this reason, FinNexus should include a shut-down trigger for these experiments.

If the new pool with algorithmic stablecoins fails to attract more than $500K TVL in 15 days or a systematic failure materializes in the future, the team reserves the right to shut the pool down.

Which type of algorithmic stablecoins shall we include?

There are currently several types of algorithmic stablecoins listed on Coingecko. Those with a higher market cap, that have been in existence for longer time are likely to be less risky.

Please vote for the token you like to become the collateral of the new FPO pool.

• $ESD
• $AMPL
• $FRAX
• $DSD
• $BAC
• Others（Please specify on the forum）

[FIP #05] 投票决定哪种算法稳定币可以作为以太坊新FPO期权池的抵押资产

提案类型:

投票选择哪些抵押资产应被添加到新的FPO流动资金池。

治理规则版本:

临时治理规则。

提案者：

FinNexus团队

提案内容：

关于算法稳定币 算法稳定币是一种可以使用算法调整其供应以控制其价格的代币。简单讲，算法稳定币可以在高于目标价格时增大供应量，在低于目标价格时缩减供应量，以实现对价格的调节。 算法稳定币在去中心化金融中发挥的作用越来越重要。许多平台已经推出了弹性稳定币模型，并且获得了很大的总价值锁定（TVL）。 值得注意的是，目前算法稳定币仍处于发展的早期阶段，在大多数情况下，它们的价值是相当不稳定的。若要提高其接受程度和实用性（如USDT或DAI），它们必须首先在DeFi空间和以太坊协议上的其他应用程序中被接受为货币。然而，长期来看，随着协议的成熟和波动性的下降，它们实用性不容小觑。 你可以在这里.找到更多关于算法稳定币的信息。

在FPO期权流动池中尝试增加算法稳定币有哪些好处？

1. 算法稳定货币已经吸引了大量流动性，并可能成为一种非常重要的DeFi基准货币。由于其发展仍处于早期阶段，现在是在我们的FPO模型上进行实验的好时机。
2. FPO模型是基于使用MASP机制的流动性池。由于交易和结算期权的价值是以美元衡量的，因此算法稳定币的初始可能波动性不构成应用的技术及商业障碍。
3. 算法稳定币的引入有助于增加TVL。
4. 正如[FIP #03]提到的，FinNexus将为新期权矿池启动一个挖矿计划。算法稳定币池将采用相同的挖矿机制，基本挖矿量的日奖励为确定为4000 cFNX/天。有关cFNX和挖矿的更多信息，请参阅[FIP #03]。

可能存在的风险

1. 算法稳定币的价值目前仍然不稳定，其波动性对期权的交易和结算将可能产生不利影响。我们需要为期权的产生设定较高的抵押率要求。
2. 算法稳定币作为抵押资产需要可靠的喂价机制。
3. 如果机制失效或价格陷入不可逆转的螺旋式下跌，一些算法稳定币可能会失去流动性。因此，FinNexus应该为这些实验设计一个应急停止机制以应对价格暴跌。 如果带有算法稳定币的新流动池在15天内未能吸引到超过50万美元的总锁定价值，或在未来出现系统性故障，团队拥有关闭该流动池的权利。

您建议引入哪种算法稳定币?

目前有多种算法稳定币在Coingecko上进行了列示。那些市值较高、已经运行了很长时间的项目，风险相对较低，适合作为本计划的实验抵押币种标的。 请为您希望成为新FPO池抵押资产的代币投票。 • $ESD • $AMPL • $FRAX • $DSD • $BAC • 其他（请具体在论坛留言说明）