Fei Protocol

Fei Protocol has staking pools in which TRIBE is earned over time.

The total reward balance is 200,000,000 TRIBE, distributed over 2 years. This represents 20% of the initial TRIBE supply. The rewards distribution rate decreases linearly.

Fei Protocol staking allows users to deposit multiple tokens to earn TRIBE. Each pool has an allocation of the overall staking rewards. The rewards for each pool are split evenly amongst all participants at any given time.

Staking is completely fluid Users can deposit liquidity assets (stake), earn TRIBE for a few blocks, claim earned TRIBE, then withdraw staked tokens at will. Optional lockups which earn higher rewards may be introduced in the future.

Users are currently staking FEI/TRIBE Uniswap v2 LP tokens as well as FEI+3CRV tokens to earn the TRIBE rewards. The Fei DAO can adjust the distribution rate and the staked token.

The FEI stablecoin is collateralized by a PCV reserve. Fei Protocol prioritizes liquidity when deploying this reserve to make sure users are able tocan trade FEI at high volume.

The formula ignores "Protocol controlled FEI" because any FEI that the protocol holds will never be sold for PCV, only burned. Protocol controlledProtocol-controlled FEI can have second-order, short-term inflationary effects. For instance, FEI deposited into a lending market by Fei Protocol could increase the circulating supply when borrowed. The interest accrued and eventual withdrawal of that FEI ultimately have a net deflationary effect in the long term.

When coupled with a smart contract, bonding curves can escrow, buy and sell tokens in accordance withby the price function. The contract can take fees for buying and selling as a fundraising mechanism for Protocol Controlled Value.

Fei Protocol's primary issuance mechanism for FEI areis bonding curves. These bonding curves can have any parameterization but should follow this pattern:

The Governor role is the most powerful role in Fei Protocol. It grants and revokes all other roles in the platform. It manages a multitude of protocol parameters unique to each contract (bonding curve targets, incentive formulas, oracle windows, and more).

Minters create (mint) Fei USD and add it to any address. Minting can be a reward for the actions of supporting the peg, or an issuance mechanism for funding PCV on a bonding curve.

Burners remove (burn) portions of Fei USD from any address. Burning occurs as a disincentive for the actions of hurting the peg.

PCV Controllers can move PCV from any contract and redeploy it elsewhere. This is done to reweight the peg, facilitate integrations, or protect against adverse conditions.

The Guardian enables quick feature shutdowns during unforeseen events. It can revoke any role from the above described role types. It can also shut off additional protocol functionality, and force reweights. It cannot manage PCV or mint FEI.

• Guardian
• PCV Controller
• Burner
• Minter
• Minter
• Burner
• PCV Controller
• Guardian

The Governor role is the most powerful role in Fei Protocol. It grants and revokes all other roles in the platform. It manages a multitude of protocol parameters unique to each contract (bonding curve targets, incentive formulas, oracle windows, and more).

The Fei CoreCore contract manages access control.

Fei Protocol uses access control to define the system's contracts responsibilities.

System Roles:

• Guardian
• PCV Controller
• Burner
• Minter
• Governor

The Fei Core contract manages access control.

Fei Protocol bonding curves have unique features. They are buy-only, meaning that purchasers must go elsewhere to sell their FEI. The Fei Protocol prioritizes PCV liquidity with the assets it receives from the curve. Additionally, the price function of a bonding curve is not based on the total circulating supply of FEI but only based on the amount of FEI purchased on that specific bonding curve.

Fei Protocol is launching with a single, ETH denominated bonding curve with plans for more as the protocol scales.

Fei Protocol's primary issuance mechanism for FEI are bonding curves. These bonding curves can have any parameterization but should follow this pattern:

• Use a curve with a desirable growth rate
• Have a "shift" that determines the starting price
• Have a "Scale" target at which the curve switches to fixed relative to the oracle peg
• Have a "buffer" which is a percentage premium above the peg that the curve trades at post-Scale

Bonding curve

Bonding curves are price functions for a token that generally involve the token being minted by the bonding curve in exchange for an underlying asset. They can take in the current circulating supply as a parameter in the formula. They are generally monotonically increasing, facilitating greater incentives for early adopters.

When coupled with a smart contract, bonding curves can escrow, buy and sell tokens in accordance with the price function. The contract can take fees for buying and selling as a fundraising mechanism for Protocol Controlled Value.

The formula ignores "Protocol controlled FEI" because any FEI that the protocol holds will never be sold for PCV, only burned. Protocol controlled FEI can have second-order, short-term inflationary effects. For instance, FEI deposited into a lending market by Fei Protocol could increase the circulating supply when borrowed. The interest accrued and eventual withdrawal of that FEI ultimately have a net deflationary effect in the long term.

The FEI stablecoin is collateralized by a PCV reserve. Fei Protocol prioritizes liquidity when deploying this reserve to make sure users are able to trade FEI at high volume.

Critically, FEI can be over-or under-collateralized depending on volatility on the PCV and other market conditions.

The collateralization ratio of FEI at any time is calculated as follows, with the denominator being "User-controlled FEI":

Collateralization ratio of Fei Protocol

FEI (Fei USD) is designed to allow for flexible upgrades and arbitrary incentive mechanisms to support the $1 peg target.

Its issuance is controlled by the Minter-role, and any contract with this role can mint FEI to any address. The Burner-role can burn FEI from any address, and is utilized for deflation and disincentives.

Protocol Controlled Value (PCV) is a categorization of Total Value Locked (TVL) which represents all assets that are ultimately not redeemable by users. Commonly used examples of PCV are DAO treasuries and insurance funds. PCV can be conceptually extended to include any algorithmic management of the protocol-owned assets to facilitate protocol goals such as liquidity and stability.

Generally, there are two ways for a protocol to fund PCV:

1) Fees for functionality

e.g., Compound and Aave insurance pools funded by a spread on borrowing interest rates

2) Issuing a token

e.g., NXM token issuance, or other governance tokens in which the protocol holds some as a DAO treasury

The Fei Protocol primarily funds PCV via bonding curve FEI issuance. The bonding curve mints FEI in exchange for PCV at an oracle determined ETH exchange rate. It escrows this PCV until a keeper (Section 5.1.1) allocates it to various PCV Deposit contracts.

Fei Protocol is designed to support generalized Protocol Controlled Value. The protocol can fundraise PCV in any ERC-20 token by issuing a bonding curve denominated in that asset, contingent upon a reliable oracle to handle asset pricing.

PCV Controllers manage PCV among the various PCV Deposits. Future Fei Protocol upgrades can algorithmically adjust PCV based on market conditions or include unique two-way integrations with other protocols. These integrations can leverage the utility tokens of other platforms or their functionality with other ERC-20 tokens held by the protocol.