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Introducing Fei V2 (Fei Protocol)

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7 months ago

Fei Protocol, which is scalable and fully traversed, has released V2 launch information in terms of stability, efficiency, and scalability in terms of stability, efficiency, and scalability.

FEI V1 introduced the concept of the protocol control value (PCV "PCV; Protocol Controlled Value (PCV). PCV is a dollar value of the stable stable coin, Fei, and completely finging the dollars and fully finging the dollars, It became an important value driver.

In V2, we will increase new examples such as LiaS (Liquidity As a Service) as a service that increases the use of these deproducts of the central weaving organization.

Fei V2 will lead to a stable coin that has more benefits when FEI compared to other stable coins in a stable coin ecosystem through the following improvements.

1: 1 Maintain strong value stabilization through the possibility of repayment

Efficient management of risks, liquidity, and returns through the balancer V2 PCV pool controlled by algorithm

Incentive Adjustment of TRIBE TOKEN Holder and FEI Token Holder with Rework (Bag Bag) and Safety Device

Below is to look at each feature more detail in each feature.

Stability - 1: 1 Reversibility

The value stabilization mechanisms through direct incentives and weight reconciliation of FEI V1 are not used by the following problems and inefficiencies that have been discovered so far.

Optimized response time, Unnatural Transaction Spread and Sensitivity to MEV

All FEI tokens in FEI V2 can be replaced directly with PCV reserves. This is a key mechanism that is effectively scalable while maintaining the state of the FeI is centralized. If you can always purchase or sell stable coins to one dollar, you can meet the requirements of the growing Defi ecosystem.

The conversation method that is transparently checked on the on-body, allows FeI to be able to replace the centralized option such as USDT or USDC.

As you can see in recent governance operators, the FEI is 0.5% of the spread of 1: 1 repayment.

FEI V2 aims to maintain 100% reserve rates so that they can be valued in the initially distributed Fei's repayment. This reserve ratio can be lowered through the governance vote after testing the mechanism and the list model, and the newly issued FEI will always keep the reserve close to 100%.

The PCV currently has six digital assets, some of which are price volatility. Therefore, it is important to adjust the risk in order to maintain sufficient capital to maintain the price stability of the FEI.

FEI V2 has a feature that manages volatility risks in algorithms through a custom Balancer V2 investment pool.

Balancer V2 offers very excellent features for capital-efficient liquidity management.

Weight setup possible

Asset management functions for meta governance and revenue creation through this trouble

Cycle breaker function that mitigates the risk of unique assets

FEI V2 defines different weights for various PCV leverage levels known as Risk Curve to leverage algorithm weight adjustment. When PCV is close to 100% collateral (high leverage), risk curves adjust PCV weights for stable assets such as DAI and RAI through algorithms.

When compared to V1, FeI V2 uses a Balancer V2 investment pool to manage risks and distribute liquidity, and generate profits through better capital efficiency.

Tribe incentive adjustment - Bankback and safety devices

The FEI is a community-leading protocol to manage the TRIBE token holder to manage the PCV and Fei ecosystems. In FEI V1, these relationships have been limited to governance.

However, in FEI V2, the Tribe token holder is a direct beneficiary and risk is a direct beneficiary of PCV and is a list of games.

FEI V2 introduces a new concept called "Protocol Equity" that means the remaining PCV that will remain after all the FEIs being distributed to PCV collateral. This protocol shall be generated through PCV revenue and evaluation profit, and some of the incentives of the Tribe token holders are allocated to the TRIBE Bag, such that the incentives can be matched to the FEI. A protocol stake other than the amount assigned to the biking is used as a resource that can continue to raise the buffer and revenue.

In the end, Tribe token holders have incentives to maximize the protocol stake to maximize the biking of the Tribe token, and the Bagged Tribe token will be assigned to the following purposes according to the percentage determined by governance.

If the PCV drops below the target preparation rate, it can be exchanged with the FEI to issue the TRIBE token. This is called a safety device (backstop). This is how the additional issued TRIBE tokens will keep value stabilization if the FEI token holder wants to repay. As the repayment claim of the FEI token, the distribution amount of the FEI token decreases and will be restored naturally to the target preparation rate of the PCV. It is also helpful to mitigate inflation because the FEI token holder will issue the TRIBE token as much as you want to repay.

Personal thought

The FEI protocol is a huge protocol that runs a large-scale PCV with a large amount of funded, but the FeI failed to fault in V1, and in fact, it is impossible to use as a stable coin in virtually Dex. This was very much.

Tribe, which manages a huge scale PCV, is responsible for the decision of the FEI protocol as a governance token, but there was no critical proactive projection, but there was no problem that there was no participation incentives.

The conceptual design such as the problem of trial and PCV, such as the problem that the centralized stable coin, which is deviated from the risk that can be developed from a centralized specific entity, is likely to have a sense of conceptual design such as PCV, It was a fennel level.

This FEI V2 shows that it has introduced a lot of improvements based on diagnosis of problems that have been caused so far, which is a bit more It seems to be watching a lot of time.

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