SUMMARY: Add new assets to the Fuse pool including (but not limited to per discussion here): FEI, RAI, FLOAT, alUSD, and LUSD
BACKGROUND: Rari Fuse Pool Party (Pool 18) has been active since June 29th,2021. Over $40M assets have been deposited and over $3.7M has been borrowed. During a short downturn, around $200k was liquidated; however, the impact to OHM’s price was minimal and no impact was observed to the protocol.
Fei Labs has signaled interest in depositing $1.333M FEI into our Pool Party if we are amicable to the engagement. Details here: https://snapshot.fei.money/#/fei.eth/proposal/Qmf5933DNHDnxHKEZwJmC8TAi2kqGUUzpRbUQVZx1UGRsb
MOTIVATION: The current borrow rates are:
ETH at 16.9%
USDC at 27.4%
DAI at 29.2%
FRAX at 24.8%
As we evaluate other Rari Fuse pools, Fei offers 2.9% borrow as of writing.
Moreover, adding new assets to the Fuse Pool can serve as an interesting mechanism for the OlympusDAO to better evaluate the utility of various algostable currencies. We will continue to seek community opinions about new potential reserve assets.
One may consider the addition to the Pool Party as the first step of many to a longer and deeper engagement with Olympus. Although we are expressing interest in these specific protocols, the OlympusDAO is continuing to discover better ways to integrate and collaborate across the industry. Future additions or removals are not official endorsements or partnerships unless otherwise noted.
PROPOSAL: Pending community sentiment, we propose to add the option to deposit and borrow the following assets:
FEI CF/RF: 65% / 10%
RAI CF/RF: 65% / 10%
FLOAT CF/RF: 65% / 10%
alUSD CF/RF: 65% / 10%
LUSD CF/RF: 65% / 10%