Thanks @state for the support :)
The snapshot to add FEI has ended with the “Yes” votes winning over “More discussion needed” at 50.19% to 49.8%. “No” received 0.01%. Given the narrow margin it seems appropriate to have some more discussion before moving forward with a DAO vote.
We would also like to add three modifications that we believe will make the proposal more appealing:
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Fei Protocol will seed the pool with 25M FEI. This will add TVL and utility to the AAVE and FEI ecosystems and give users immediate access to borrowing FEI. This seeding is a scaled up version of the framework that Fei has been developing with other interest rate platforms (Snapshot).
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We will adjust the interest rate parameters to make them more conservative based on the feedback discussed above (h/t @Alex_BertoG). We will use a variableRateSlope2 of 1 instead of 0.75, in line with the most conservative stablecoin models (sUSD and BUSD). This provides additional safety for lenders and accrues reserves faster to the AAVE reserve pool at high utilization.
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Assuming the technical implementation can be worked out, Fei Protocol will add TRIBE incentives on both borrowing and lending FEI to drive more volume. We will discuss and commit to numbers on these via snapshot in our community before bringing any FEI proposal on-chain for AAVE.
Just to reiterate, the idea with this proposal is to add FEI to AAVE only as a non-collateral asset. This would allow lending and borrowing of FEI on AAVE but not allow FEI to serve as collateral for borrowing other assets. If this proposal proves successful then giving FEI some collateral factor might make sense later down the road.
Thanks for voting. We are eager to hear any further feedback that you might have for this proposal!