Author:@Fishy
Summary
Create a DAO-managed Fuse pool with BAL, ETH, wstETH, FEI, and DAI.
Motivation
Fei Protocol’s FeiRari pool has been an extremely effective tool for TRIBE holders to gain maximal value on their holdings, and it has attracted over 300M TVL, with 120M of that being TRIBE (around 1/6 of supply). It has also unlocked additional liquidity for TRIBE holders, with over 25M in assets being borrowed from the pool. A Balancer DAO pool could serve a similar utility to the Balancer community. In order to start with a conservative pool (which can be adjusted by the community to their preferences), we can copy the FeiRari pool parameters and use BAL, ETH, wstETH, FEI, DAI as starting assets.
Risk Assessment
The major risks involved are smart contract risk (Rari Capital has only experienced one major smart contract failure, which was repaid by the DAO), oracle risk (which can be solved by only adding assets with full-range UniV3 liquidity or Chainlink oracles), and stable asset peg risk (wstETH, FEI, and DAI have all maintained strong pegs).
Specification
Create a Balancer DAO Fuse pool with
BAL 75% LTV
ETH 80% LTV
wstETH 80% LTV
FEI 80% LTV
DAI 80% LTV
For pool parameters, copy Fuse Pool #8 “FeiRari”
Open Questions
Is it possible to use the 80/20 Balancer pair as well as BAL?
Is there an appetite for liquidity mining on this pool?