Hi everyone! This is Joey, founder of Fei Protocol.
The vision for TRIBE has always been to build out the DeFi that we all want and need. Financial primitives that can scale and network in a permissionless way, free from the inherent bureaucracy and fat that comes from laws not written in code. Fei and Rari have each captured a critical piece of this vision, the fully decentralized algorithmic bank and the permissionless money market. Together, we can achieve even more.
It is for this reason the Rari DAO and Fei DAO core contributors would like to submit an ambitious proposal that would change the DeFi landscape forever: a merger between RGT and TRIBE.
Together, a Rari and Fei merger would create a fundamentally new type of DeFi platform, and there are no two DeFi projects better suited for a merge. Uniting forces will compound our existing strengths.
Why A Merge Strengthens Rari and Fei
Rari and Fei’s strengths play perfectly together, with many synergies coming from an RGT/TRIBE merge. The main bottlenecks to Fuse’s growth are bootstrapping pools with initial liquidity, and ensuring manipulation resistant oracles for long-tail assets. The Fei DAO can easily provide this initial FEI liquidity to solve the chicken-and-egg problem, and has already done so in 15 Fuse pools, including 8 of the top 10.
Tighter integration between the protocols would enable fundamentally new types of DeFi services. On Rari, the oracle problem is a major bottleneck, and the Fei DAO can help scale this through Liquidity as a Service with Ondo. By quickly and cheaply spinning up deep liquidity on Uni v3 or Balancer v2, protocols can get a manipulation resistant full-range embedded TWAP oracle to power the Fuse market. Combined with a FEI liquidity deposit, users can go end-to-end on any trade they would like to achieve in the market with existing FEI liquidity. As more pairs begin to form against FEI, the network effects grow for Fuse and FEI to list more assets and more pools with more utility for each.
A united front between Rari and Fei will enhance this relationship. For any token, Fuse becomes the easiest and most frictionless way to scale out utility, and FEI becomes the most liquid pair.
Our communities and teams together already have a synergistic relationship. The Fei DAO is actively developing cutting edge Fuse infrastructure:
- First DAO owned pool
- First incentivized pool (with dynamic incentive controls through TRIBE rewards contract)
- Generalized Plugins including LUSD Stability Pool
- Oracles through LaaS + Balancer
A merge cements a long term relationship and unity of fortune that can’t be achieved by a token swap. It sets up a broader vision to be the focal point of DeFi innovation for the foreseeable future.
What would a merge look like?
High level goals:
- Minimize friction + maximize simplicity of a merge
- Full long term alignment
- Short/medium term independence with roadmap convergence
Conversion of RGT to TRIBE
Take the USD-denominated value of the RGT and return the equivalent amount of TRIBE. We can use a neutral third party and historical price data to ensure that this is done in the most fair manner and such that it is not prone to manipulation. Some options include Gauntlet, Llama DAO, and Reverie.
The existing RGT treasury can be covered by existing TRIBE treasury. Remainder will be newly minted TRIBE.
Given that this affects token holders of both protocols, this is a key point where we encourage community feedback on how the third party can structure the swap.
Utilize FEI to pay back the victims of the previous hack. This would be paid in FEI at the ETH price from the time of hack via a merkle airdrop. In a future proposal, both communities should establish a policy for future hacks so there is no ambiguity for the community.
In the near term, the Rari Capital DAO and processes, including all smart contracts, will remain identical, swapping out RGT for TRIBE. Longer term both protocols can converge on a standard set of governance practices.
Initially keep discord/twitter/protocol brands all distinct and identical to current situation.
Should come up with epic unifying rebrand for TRIBE together in a separate proposal.
Establish a joint task force to build cross-protocol integrations and keep long term roadmap alignment, and provide additional treasury resources for the existing Rari Infrastructure Task Force, 6M TRIBE and 6M FEI to vest linearly over 3 years.
Rari has built the perfect credit, yield, and leverage marketplace for protocols through Fuse. Fei has a powerful combination of decentralization, scalability, and protocol controlled value, and is positioning itself to be a major partner and base infrastructure for the next wave of DeFi.
By joining efforts, new projects will see the Rari + Fei combo as the no-brainer destination to grow utility for their token holders. Together we can design systems that seamlessly integrate the entire experience for partner DAOs to level up the existing product-market-fit of Fuse and Fei as individual projects. Eventually, our combined protocols will be a home for all cryptoassets a hub of DeFi innovation.
Both teams are incredibly excited about the potential of this merger, and we hope to hear all of the community’s thoughts and discuss together!
Here is the sister post sent by @jai on the Tribe forum: https://tribe.fei.money/t/fei-rari-token-merge/3642