Liquidity-as-a-Service => Partnership with FEI DAO

Hey! Bruno here from Fei community!

Fei is already a partner in StakeDAO Fuse pool by seeding FEI there. I would like to bring the discussion about a new kind of partnership, the Liquidity-as-a-Service (LaaS) offering.

Liquidity Mining attracts capital at a high cost, LaaS is a cheaper alternative.

With LaaS, projects can get immediate liquidity without issuing more tokens and upfront capital costs. Fei & Ondo Finance help by doubling their liquidity.

DAO allocates tokens to an Ondo Vault; this amount is combined with Fei to LP on Uniswap or Sushiswap. Currently, the program lasts 30 days and at the end of the period, DAO would pay a 0.17% fee (2% annual fee divided by 12 months) on the total value of the governance token deposited in the vault. This 0.17% fee can be partially, if not fully covered. This will depend on the accrued trading fees of the vault and the impermanent loss that are kept by the project.

You can use this worksheet to make simulations.

It is a good way to increase liquidity with a much lower cost than liquidity mining and to gain awareness by participating in this innovative partnership.

Fei is finalizing the selection of launch partners for LaaS. Those selected to be part of the launch group can benefit from the low fees associated with the group.

More resources on the Liquidity-as-a-Service here: Medium Article.

I would love to hear StakeDAO community about this idea.

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Hey,

I think it’s a great proposal, thanks a lot Bruno!
However, it feels like it is a bit in contradiction with Stake DAO’s previous proposal that was accepted and which launched the liquidity acquisition program through Olympus pro.
Personnally I would be in favor of choosing one or the other, but we should definitely vote on that.

What do you guys think?

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Joey wrote an article going through the various options for liquidity in this article if you haven’t seen it already > New Approaches to Liquidity in DeFi | by Joey Santoro | Fei Protocol | Oct, 2021 | Medium

Fei + Ondo LaaS is the lowest cost of all options, and a good place to start, it’s easy to switch if you want to try something else in the future.

Something worth nothing is that the Fei Community will vote to provide TRIBE rewards for LaaS group participants at 10AP per 1M in liquidity for the subscription duration. AP are allocation points, it is basically a % of our reward stream. That would be 10k TRIBE/week, so StakeDAO would generate a position in TRIBE, double the liquidity available, and earn all trading fees.

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